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Gross National Income (GNI): Definition, Formula, and How It Differs From GDP and GNP

Gross national income adjusts GDP for primary income residents receive from abroad and pay to nonresidents. See the formula and how GNI compares with GDP, GNP, and GNI per capita.
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Gross national income (GNI) measures the gross primary income attributable to a country’s residents. It starts with gross domestic product (GDP), then adds primary income residents receive from abroad and subtracts primary income paid to nonresidents. In short: GNI = GDP + net primary income from abroad.

What gross national income measures

GNI is an income measure, not simply a count of goods and services produced within a country’s borders. The United Nations’ System of National Accounts defines it as GDP adjusted for primary income flows between resident and nonresident units. The System of National Accounts is the internationally agreed framework for compiling national-account measures, including the concepts and rules used to define them. The United Nations overview of the SNA describes that framework and its role.

“Resident” refers to the economic residence of a person or institution for national-accounting purposes, not merely citizenship. The distinction matters because GNI assigns primary income according to residence, while GDP is organized around production in an economic territory.

What is the formula for GNI?

GNI = GDP + primary income receivable from abroad − primary income payable abroad

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The same relationship can be written as GNI = GDP + net primary income from abroad. The adjustment includes primary income such as compensation of employees and property income. The United Nations glossary defines GNI as GDP less primary incomes payable to nonresident units plus primary incomes receivable from nonresident units. United Nations System of National Accounts glossary: “Gross national income (GNI)”

A simple example

If a country’s GDP is 500 billion in a given currency, residents receive 30 billion of primary income from abroad, and 45 billion is payable to nonresidents, its GNI is 485 billion: 500 + 30 − 45. This illustrates the calculation only; the figures are hypothetical.

What the adjustment does not include

GNI is not GDP plus every payment crossing a border. The formula concerns primary income. Current transfers are a separate category: gross national disposable income, for example, is derived by adding net current transfers to GNI. The UN glossary entry for GNI and World Bank metadata on income measures distinguish these concepts.

GNI vs. GDP vs. GNP

Measure What it centers on How to interpret it
GDP Production within an economic territory Counts domestic production regardless of whether related primary income ultimately goes to residents or nonresidents.
GNI Gross primary income attributable to residents Starts with GDP and adjusts for primary income receivable from and payable to nonresidents.
GNP Older terminology for the corresponding national aggregate The UN glossary says GNI is identical to GNP as previously used in national accounts generally.

The core distinction between GDP and GNI is territory of production versus residence-based income. GNI can be higher than GDP when primary income receivable from abroad exceeds payments to nonresidents; it can be lower when the reverse is true.

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GNI and GNP are not different calculations in this national-accounts usage. The UN glossary explicitly notes that “gross national income is identical to gross national product (GNP) as previously used in national accounts generally.” Modern statistical sources commonly use GNI terminology. When joining older and newer historical data, check the dataset’s definitions and terminology rather than assuming every series is presented on an identical basis. UN SNA glossary

What GNI per capita means

GNI per capita is GNI divided by the country’s midyear population. It is an average across residents, not a description of what a typical person earns, and it does not show how income is distributed.

The World Bank Atlas-method measure

The World Bank’s “GNI per capita, Atlas method” indicator first converts GNI into U.S. dollars using an Atlas conversion factor, then divides by midyear population. The factor is designed to reduce the effect of exchange-rate fluctuations in cross-country comparisons. The Bank describes it as averaging exchange rates for the current and two preceding years, with adjustments for inflation differences between the country and the comparison-country group. World Bank explanation of the Atlas method and country groups

Do not assume the Atlas-method figure is interchangeable with every GNI-per-capita series. Currency conversion, price basis, and population denominator can differ. The World Bank indicator page identifies the measure and allows users to view data by country and year; the underlying sources include national statistical offices, OECD national accounts, and World Bank estimates. World Bank indicator: GNI per capita, Atlas method (current US$)

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Which national-accounting standard is current?

The United Nations Statistical Commission adopted the 2025 System of National Accounts at its 56th Session in 2025. The 2025 SNA updates the 2008 SNA while retaining its basic theoretical framework, with new and clarified guidance on topics including globalization, digitalization, emerging financial issues, Islamic finance, and the informal economy. United Nations: 2025 System of National Accounts

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