Gross National Product

Presented by Seetal Daas at BBA(Hons) Part II
on date March 5th ,2014

1. Gross National Product Presentation of Macro Economics Presented by : Seetal Daas Business Administration Part II(Batch 2k13) Sindh University Laar Campus @ Badin

2. The money of all the final goods and services produced by the people living in a country during a period of one year. The value of all goods and services produced by nationals whether in the country or not. Definitions of GNP

3. Personal Consumption Expenditure Gross Domestic Private Investment Govt. Expenditure on Goods & Services Gross Domestic Public Investment Export Surplus Net Foreign Investment following expenditures are added together to measure GNP

4. GNP=C+I g+ G+(X-M) C=Personal Consumption Expenditure I g=Gross Investment (Public & Private) G=Govt. on goods and services X-M=Export Surplus GDP=C+G+I+(XN) C = is equal to all private consumption, or consumer spending, in a nation's economy G = is the sum of government spending I = is the sum of all the country's businesses spending on capital NX = is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports) GNP & GDP can be expressed symbolically as;

5. GNP is defined as ‘The value of all goods and services produced by nationals whether in the country or not’ . GDP is defined as ‘ The monetary value of all the finished goods and services produced within a country's borders in a specific time period’. Difference b/w GDP & GNP (according to definitions )

6. If a Japanese multinational produces cars in the UK. This production will be counted towards UK GDP. However, if the Japanese firm sends £50m in profits back to shareholders in Japan. Then this outflow of profit is subtracted from GNP. UK nationals don’t benefit from this profit. If a UK firms makes profit from insurance companies located abroad, then if this profit is sent back to UK nationals, then this net income from oversees assets will be added to GNP. Note if a Japanese firm invests in the UK, it will still lead to higher GNP, as some national workers will see higher wages. However, the increase in GNP will not be as great as GDP. Examples of Increment and decrement of GNP & GDP

7. Economy Of Pakistan(2012) Rank 26th (PPP) 44th (Nominal)Currency1  Pakistani Rupee  (PKR) Rs.1 = 100  Paisas Fiscal year 1 July – 30 June Trade Organizations ECO ,  SAFTA ,  ASEAN ,  WIPO  and  WTO GDP $240 billion (nominal) (2012) $514.6 billion (2012 est.)(PPP)GDP growth3.7% (2012) 5.1% (1st Quarter 2013/2014 FY)GDP per capita$1,278 (nominal; 2012)  $3,376 (PPP; 2012)GDP by sector agriculture: 21.2%, industry: 25.4%, services: 53.4% (2010 est.) I nflation  ( CPI )10.9% (Dec 2013) Population: below   poverty line 24% (2013) , Labor force60.36 million (2012 est.)Labor force by occupation agriculture : 43%,  industry : 20.3%, services : 36.6% (2005 est.)Unemployment5.6% (2012 est.) Main industries textiles  and  apparel ,  food processing, pharmaceuticals ,  construction materials ,  chemicals ,  cement ,  mining , machinery ,  steel ,  engineering , software and hardware,  motorcycle  and  auto parts ,  electronics ,  paper products , fertiliser ,  shrimp Ease of doing business rank 107th (2013) ExternalExports $29.66 billion (2012 est.)Export goods textiles ( garments , bed linen,  cotton cloth ,  yarn ),  rice ,  leather goods ,  sports goods , chemicals,  manufactures, carpets ,  steel ,  foodstuffs ,  fertilizer, Cement ,  sugar ,  animals ,  electrical equipment ,  petroleum  and rugs Main.

8. Continued… E xport partners   United States  13.3%   China  10.9% , United Arab Emirates  8.6%   Afghanistan  8.5% (2012 est.)Imports$33 billion (2013 est.)   Import goods petroleum products, machinery,  plastics ,  transportation equipment , edible oils,  paper   and paperboard ,  iron  and  steel ,  tea Main import partners  China  19.8% , Saudi Arabia  12.0% , United Arab Emirates  11.9%   Kuwait  6.2% (2012 est.) ] Public finances Public debt 62% of GDP (2013est.) , Revenues $29.51 billion (2012 est.) Expenses $44.19 billion (2012 est.) Credit rating Standard & Poor's : B- (Domestic) B- (Foreign) B- (T&C Assessment) Outlook : Stable [