Difference Between NNP and NDP
The key differences between NDP and NNP are given in the table below.
NNP | NDP |
NNP = GNP - Depreciation | NDP = GDP - Depreciation |
It is equal to the product of per capita income and population. | Currencies and the depreciation of assets are taken into account. |
It gives the accurate total value of goods and services by a country. | It cannot be used for comparison across the world due to different rates of depreciation. |
NNP is the National Income of an economy. | It will be always lower than GDP. |
It is closely related to the concept of Gross National Product (GNP). | The difference between NDP and GDP indicates the obsoleteness of capital goods. |
It indicates the total production of a country. | A decrease in the gap between NDP and GDP indicates the condition of capital stock in the country is improving. |
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