Question

Find Canada's GDP for 2018 and Canada's GNP for 2018 (give the numbers and cite your source). Find Mexico's GDP for 2018 and Mexico's GNP for 2018 (give the numbers and cite your source). In 1-3 sentences, explain why Mexican difference between GDP and GNP is much larger than Canadian difference between GDP and GNP.

Answer 1

We use data from world bank which collect data of all the countries economy. In 2018, the GNP of Mexico was $2.44 Trillion and the GDP of Mexico was $1.22 Trillion. In 2018, the GNP of Canada was $1.76 Trillion and the GDP of Canada was $1.71 Trillion.

It is clear that the difference is huge for Mexico between GDP and GNP. It is so because Mexico has a huge remittance income which means workers go to foreign countries (mainly US) and they send money back to Mexico. Since this is not added in GDP as it is not income within the boundary of the country, GDP is much smaller than the GNP of Mexico.