Gross Domestic Product

• Gross Domestic Product is the total value of all finished goods and services produced within the borders of a country during a certain period.

Gross National Income

• Gross National Income is the total value of all remuneration paid to the owners of the factors of production that were part of the production process, during a specified period, usually one year.

Composition of GDP and GNI

• The values of GDP and GNI are expressed in the currency units of the country, for example, Rand.
• Production covers one calendar year.
• Only the production of that year (for example 2026) is taken into account.
• To make comparison between countries possible, the values are converted to US Dollars.
• The values change from year to year and the changes are indicated as percentages.
• The values are influenced by the inflation rate. The inflation rate is taken into account when the final values are calculated and the figures are then called real figures, for example the real GDP for 2019.
• Calculating the values requires complex calculations and errors may occur. The values are consequently provided to the nearest million Rand. The figures can be adjusted and the final values are only fixed after four years.