Top Countries With the Highest Net National Income (Current US$) 𖤍
Net National Income (NNI) is a macroeconomic indicator that represents the total income earned by residents of a country from both domestic and foreign sources, minus any income generated within the country but accruing to non-residents. It is a measure of the income generated by a country's residents, regardless of whether they are located within the country or abroad.
NNI takes into account various types of income, including wages and salaries, rents, profits, and net interest payments. It represents the total value of goods and services produced by a country's residents, net of depreciation, and adjusted for income received from abroad or paid to non-residents.
To calculate NNI, the following components are considered:
Gross National Income (GNI): It is the total income earned by residents of a country, including both domestic and foreign sources.
Depreciation: Also known as capital consumption, it represents the wear and tear or obsolescence of capital goods used in production.
Net income from abroad: It accounts for income earned by residents from abroad and subtracts income earned by non-residents within the country.
The formula for calculating NNI is as follows:
NNI = GNI - Depreciation + Net Income from Abroad
Net National Income is an important economic indicator as it provides insights into the income generated by the residents of a country, which can be used to assess the overall economic well-being and standard of living. It is often used in conjunction with other indicators, such as Gross Domestic Product (GDP) and Gross National Product (GNP), to provide a comprehensive view of a country's economic performance.
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