Gross national income

The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents (Todaro & Smith, 2011: 44).[1] Comparing GNI to GDP shows the degree to which a nation's GDP represents domestic or international activity. GNI has gradually replaced GNP in international statistics.[2][3] While being conceptually identical, it is calculated differently.[4] GNI is the basis of calculation of the largest part of contributions to the budget of the European Union.[5] In February 2017, Ireland's GDP became so distorted from the base erosion and profit shifting ("BEPS") tax planning tools of U.S. multinationals, that the Central Bank of Ireland replaced Irish GDP with a new metric, Irish Modified GNI*. In 2017, Irish GDP was 162% of Irish Modified GNI*.[6]

Comparison of GNI and GDP

Comparison of GNI (Atlas method), GNI and GDP
2016 World Bank (millions of current US$)
No. Country GNI (Atlas method)[7] GNI[8] GDP[9]
value (a) a - GDP value (b) b - GDP
1  United States 18,357,322 -267,153 18,968,714 344,239 18,624,475
2  China 11,374,227 175,082 11,154,194 -44,951 11,199,145
3  Japan 4,816,892 -123,267 5,096,371 156,212 4,940,159
4  Germany 3,624,638 146,841 3,536,579 58,783 3,477,796
5  United Kingdom 2,778,488 130,590 2,587,657 -60,242 2,647,899
6  France 2,590,030 124,576 2,504,684 39,230 2,465,454
7  India 2,212,306 -51,486 2,235,524 -28,268 2,263,792
8  Italy 1,923,095 64,182 1,863,085 4,172 1,858,913
9  Brazil 1,835,993 39,806 1,758,527 -37,660 1,796,187
10  Canada 1,584,177 54,417 1,508,495 -21,265 1,529,760

GNI (Atlas method) nominal

Nominal, Atlas method – millions of current US$ (top 15)[2]

Rank 2014 2013 2012 2011 2010 2009 2008 2007 2006
1  United States 17,611,491  United States 17,001,290  United States 16,501,016  United States 15,727,291  United States 15,143,137  United States 14,740,580  United States 15,002,428  United States 14,651,211  United States 14,345,565
2  China 10,096,966  China 9,110,333  China 7,934,721  China 6,726,270  China 5,752,320  China 4,856,999  Japan 4,835,553  Japan 4,812,119  Japan 4,931,413
3  Japan 5,339,076  Japan 5,899,905  Japan 6,101,579  Japan 5,775,633  Japan 5,376,601  Japan 4,797,984  China 4,070,860  Germany 3,348,291  Germany 3,160,529
4  Germany 3,853,623  Germany 3,809,927  Germany 3,754,154  Germany 3,801,607  Germany 3,662,524  Germany 3,588,452  Germany 3,601,765  China 3,283,519  China 2,685,206
5  France 2,844,284  France 2,869,883  France 2,824,713  France 2,889,304  France 2,847,703  France 2,831,553  United Kingdom 2,904,224  United Kingdom 2,835,805  United Kingdom 2,645,489
6  United Kingdom 2,801,499  United Kingdom 2,695,974  United Kingdom 2,612,525  United Kingdom 2,542,593  United Kingdom 2,540,957  United Kingdom 2,666,939  France 2,800,864  France 2,576,642  France 2,414,820
7  Brazil 2,429,720  Brazil 2,486,874  Brazil 2,432,061  Italy 2,237,958  Italy 2,234,508  Italy 2,227,358  Italy 2,222,143  Italy 2,093,640  Italy 1,989,288
8  Italy 2,147,247  Italy 2,130,760  Italy 2,143,583  Brazil 2,207,921  Brazil 1,916,260  Brazil 1,572,431  Spain 1,490,975  Canada 1,356,017  Spain 1,241,641
9  India 2,027,964  Russia 1,981,791  India 1,892,548  India 1,755,712  India 1,555,615  Spain 1,519,339  Canada 1,484,345  Spain 1,353,031  Canada 1,224,994
10  Russia 1,930,634  India 1,952,847  Russia 1,823,299  Canada 1,617,083  Canada 1,511,465  Canada 1,447,937  Brazil 1,427,429  Brazil 1,152,772  South Korea 966,585
11  Canada 1,785,099  Canada 1,848,274  Canada 1,773,264  Russia 1,547,010  Spain 1,496,363  India 1,392,779  Russia 1,368,593  India 1,117,463  India 941,326
12  Australia 1,444,201  Australia 1,514,269  Spain 1,396,221  Spain 1,455,758  Russia 1,425,123  Russia 1,318,495  India 1,229,139  South Korea 1,091,726  Mexico 921,879
13  Spain 1,366,027  Spain 1,376,929  Australia 1,359,417  South Korea 1,125,787  South Korea 1,053,302  South Korea 1,037,381  South Korea 1,118,647  Russia 1,079,991  Brazil 898,063
14  South Korea 1,365,797  South Korea 1,298,958  South Korea 1,232,164  Australia 1,119,902  Mexico 1,026,316  Mexico 988,663  Mexico 1,074,555  Mexico 1,000,700  Russia 830,146
15  Mexico 1,237,533  Mexico 1,202,800  Mexico 1,167,292  Mexico 1,068,140  Australia 1,025,186  Australia 954,754  Australia 900,062  Netherlands 809,106  Netherlands 753,205

GNI (Atlas method) PPP

PPP – millions of international dollars (top 15)[3]

Rank 2016 2014 2013 2012 2011 2010 2009 2008 2007 2006
1  China 21,366,057  China 17,966,893  United States 17,091,162  United States 16,596,084  United States 15,802,898  United States 15,121,133  United States 14,494,460  United States 14,791,194  United States 14,585,723  United States 14,140,770
2  United States 18,749,688  United States 17,823,200  China 16,418,959  China 15,112,256  China 13,680,536  China 12,305,378  China 11,017,654  China 10,090,052  China 8,991,462  China 7,637,790
3  India 8,594,226  India 7,292,778  India 6,699,996  India 6,179,567  India 5,794,517  India 5,314,158  India 4,783,856  Japan 4,433,212  Japan 4,408,333  Japan 4,180,595
4  Japan 5,443,842  Japan 4,846,688  Japan 4,844,841  Japan 4,700,740  Japan 4,522,723  Japan 4,437,371  Japan 4,192,471  India 4,376,743  India 4,138,987  India 3,658,435
5  Germany 4,094,786  Germany 3,843,163  Germany 3,707,775  Germany 3,590,009  Germany 3,534,151  Germany 3,305,460  Germany 3,107,922  Germany 3,186,644  Germany 3,070,077  Germany 2,906,891
6  Russia 3,305,725  Russia 3,237,388  Russia 3,108,506  Russia 3,254,184  Russia 3,124,400  Russia 2,837,672  Russia 2,678,150  Russia 2,797,648  United Kingdom 2,325,258  United Kingdom 2,270,766
7  Brazil 3,075,469  Brazil 3,209,390  Brazil 3,081,266  Brazil 2,984,015  Brazil 2,923,559  Brazil 2,757,522  Brazil 2,453,733  Brazil 2,436,486  Russia 2,324,769  Brazil 2,103,694
8  Indonesia 2,929,424  France 2,655,517  France 2,625,346  France 2,494,655  France 2,495,100  France 2,381,563  France 2,291,855  United Kingdom 2,343,012  Brazil 2,288,657  France 2,094,160
9  France 2,835,242  Indonesia 2,592,315  United Kingdom 2,483,802  United Kingdom 2,394,758  United Kingdom 2,343,934  United Kingdom 2,281,280  United Kingdom 2,272,667  France 2,310,555  France 2,224,097  Russia 2,071,669
10  United Kingdom 2,763,382  United Kingdom 2,550,078  Indonesia 2,436,810  Indonesia 2,275,802  Italy 2,124,755  Italy 2,054,019  Italy 2,016,501  Italy 2,050,607  Italy 1,971,909  Italy 1,865,144
11  Italy 2,316,529  Italy 2,155,153  Italy 2,148,502  Italy 2,134,839  Indonesia 2,106,961  Indonesia 1,949,021  Indonesia 1,798,541  Indonesia 1,705,066  Indonesia 1,568,263  Indonesia 1,434,248
12  Mexico 2,262,919  Mexico 2,111,206  Mexico 1,939,753  Mexico 1,941,682  Mexico 1,859,264  Mexico 1,710,132  Mexico 1,597,656  Mexico 1,611,372  Mexico 1,516,236  Mexico 1,432,295
13  Turkey 1,907,486  South Korea 1,696,955  South Korea 1,652,081  South Korea 1,627,812  South Korea 1,568,631  South Korea 1,506,812  Spain 1,492,658  Spain 1,508,412  Spain 1,447,718  Spain 1,346,277
14  South Korea 1,833,914  Canada 1,576,495  Saudi Arabia 1,549,822  Spain 1,497,167  Spain 1,494,181  Spain 1,486,687  South Korea 1,393,108  South Korea 1,405,612  South Korea 1,350,407  South Korea 1,246,382
15  Saudi Arabia 1,799,740  Spain 1,556,600  Canada 1,535,440  Saudi Arabia 1,488,100  Canada 1,401,447  Canada 1,336,646  Canada 1,279,702  Canada 1,313,134  Canada 1,271,027  Canada 1,212,200

Gross national product

Gross national product (GNP) is the market value of all the goods and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP indicates allocated production based on location of ownership. In fact it calculates income by the location of ownership and residence, and so its name is also the less ambiguous gross national income.

GNP is an economic statistic that is equal to GDP plus any income earned by residents from overseas investments minus income earned within the domestic economy by overseas residents.

GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".[10]

When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.[11]

The term gross national income (GNI) has gradually replaced the Gross national product (GNP) in international statistics.[2][3] While being conceptually identical, the precise calculation method has evolved at the same time as the name change.[12]

Use of GNP

The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP.[13] In making the switch, the Bureau of Economic Analysis (BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that "virtually all other countries have already adopted GDP as their primary measure of production".[14] Many economists have questioned how meaningful GNP or GDP is as a measure of a nation's economic well-being, as it does not count most unpaid work and counts much economic activity that is unproductive or actually destructive.[15]

GNI VS GDP

While GDP measures the market value of all final goods and services produces in a given country, GNI measures income generated by the country citizens, regardless of the geographic location of the income. In many states, those two figures are close, as the difference between income received by the country versus payments made to the rest of the world is not significant. According to the World Bank, the GNI of the USA in 2016 was 1.5% higher than GDP.[16]

In developing countries, on the other hand, the difference might be significant due to a large amount of foreign aid and capital inflow. In 2016, the GNI [17] of Armenia was 4.45% higher than GDP [18]. Based on the OECD reports, in 2015 alone, Armenia has received a total of US $409 million development assistance. Over the past 25 years, USAID has provided more than one billion USD to improve the living of the people in Armenia. GNI equals GDP plus wages, salaries, and property income of the country's residents earned abroad that also constitutes the higher GNI figure. According to the UN report on migration from Armenia in 2015-17, every year around 15-20 thousand people leave Armenia permanently [19], and roughly 47% of those are working migrants that leave the country to earn income and sustain the families left in Armenia. In 2016 Armenian residents received in a total of around $150 million remittances [20].

See also

References

  1. ^ Todaro, M. P., & Smith, S. C. (2011). Economic Development 11. Addison-Wesley, Pearson, ISBN, 10, 0-13.
  2. ^ a b c World Bank. "GNI, Atlas method". data.worldbank.org. Retrieved 2016-06-23.
  3. ^ a b c World Bank. "GNI, PPP (international $)". data.worldbank.org. Retrieved 2016-06-23.
  4. ^ "Glossary:Gross national income (GNI)". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  5. ^ "Monitoring GNI for own resource purposes". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  6. ^ Heike Joebges (January 2017). "CRISIS RECOVERY IN A COUNTRY WITH A HIGH PRESENCE OF FOREIGN-OWNED COMPANIES: The Case of Ireland" (PDF). IMK Macroeconomic Policy Institute, Hans-Böckler-Stiftung.
  7. ^ "GNI, Atlas method (current US$)". World Bank.
  8. ^ "GNI (current US$)". World Bank.
  9. ^ "GDP (current US$)". World Bank.
  10. ^ Daly, Herman E. (1996), Beyond Growth. Beacon Press
  11. ^ "Flow of Funds Accounts of the United States" (PDF). Board of Governors of the Federal Reserve System. 17 September 2010. p. 9.
  12. ^ "Glossary:Gross national income (GNI)". Eurostat statistic explained. Eurostat. Retrieved 2016-06-23.
  13. ^ "BEA: Glossary "G"". Bureau of Economic Analysis. 5 September 2007.
  14. ^ "Gross Domestic Product as a Measure of U.S. Production" (PDF). August 1991.
  15. ^ "Beyond GDP". The Economist. ISSN 0013-0613. Retrieved 2016-07-27.
  16. ^ "BEA: The World Bank - US figures". the World Bank. 2017.
  17. ^ [: https://www.macrotrends.net/countries/ARM/armenia/gnp-gross-national-product "BEA: Armenia GNP"] Check |url= value (help). Macrotrends. 2019.
  18. ^ [: https://www.macrotrends.net/countries/ARM/armenia/gdp-gross-domestic-product "BEA: Armenia GDP"] Check |url= value (help). Macrotrends. 2019.
  19. ^ [: https://www.un.am/en/news/561 "BEA: Migration Rate and Associated Issues in Armenia in 2016-2017"] Check |url= value (help). UN Armenia. 2017.
  20. ^ [: https://www.cba.am/en/sitepages/statexternalsector.aspx "BEA: Inflow of Remittances by Balance of Payments"] Check |url= value (help). Central Bank of Armenia. 2019.
Atlas method

The Atlas method is a method used by the World Bank since 1993 to estimate the size of economies in terms of gross national income (GNI) in U.S. dollars.

A country's GNI in local (national) currency is converted into U.S. dollars using the Atlas conversion factor, which uses a three-year average of exchange rates to smooth effects of transitory exchange rate fluctuations, adjusted for the difference between the rate of inflation in the country (using the country's GDP deflator), and that in a number of developed countries (using a weighted average of the countries' GDP deflators in SDR terms). The resulting GNI in U.S. dollars is divided by the country's midyear population to obtain the GNI per capita.The World Bank favors the Atlas method for comparing the relative size of economies, and uses it to classify countries in low, middle and high-income categories and to set lending eligibilities, in order to reduce short-term fluctuations in country classification.

Budget of the European Union

The European Union has a budget to finance policies carried out at European level (such as agriculture, regional development, space, trans-European networks, research and innovation, health, education and culture, migration, border protection and humanitarian aid).

The European Union budget is primarily an investment budget. Representing around 2 % of all EU public spending, it aims to complement national budgets. Its purpose is to implement the priorities that all EU members have agreed upon. It provides European added-value by supporting actions which, in line with the principle of subsidiarity and proportionality, can be more effective than actions taken at national, regional or local level.

The EU has agreed on a budget of €165.8 billion for the year 2019, representing around 1% of the EU-28's gross national income (GNI). The EU has a long-term budget of €1,082.5 billion for the period 2014–2020, representing 1.02% of the EU-28's GNI. The long-term budget, also called the Multiannual Financial Framework, is a long-term spending plan, allowing the EU to plan and invest in long-term projects.

Initially, the EU budget used to fund mainly agriculture. In the 1980s and 1990s, Member States and the European Parliament broadened the scope of EU competences through changes in the Union’s founding Treaties. Recognising the need to support the new single market, they increased the resources available under the Structural Funds to support economic, social and territorial cohesion. In parallel, the EU enhanced its role in areas such as transport, space, health, education and culture, consumer protection, environment, research, justice cooperation and foreign policy.

Since 2000, the EU budget has been adjusted to the arrival of 13 new Member States with diverse socioeconomic situations and by successive EU strategies to support jobs and growth and enhanced actions for the younger generation through the Youth Employment Initiative and Erasmus+. In 2015, it has set up the European Fund for Strategic Investments (EFSI), “so called Juncker plan” allowing to reinforce investments in the EU.

With regard to migration, it finances actions to provide emergency assistance to the frontline Member States, protect the external borders and contributes to reducing migratory pressures by directly assisting the countries and communities hosting refugees, as well as by addressing the root causes of migration in the wider regions of origin.

The EU budget finances the EU’s external action, which seeks to promote democracy, peace, solidarity, stability and poverty reduction, by investing in its neighbourhood. It has also accompanied the growing role of the Union in the international arena, as a leader in the fight against climate change and as the largest donor of humanitarian and development aid in the world.The largest share of the EU budget (around 70% for the period 2014-2020) goes to agriculture and regional development. During the period 2014-2020, the share of EU spending on farming is set at 39%. In 1985, 70% was spent on farming. Farming’s relatively large share of the EU budget is due to the fact that it is the only policy funded almost entirely from the common budget. This means that EU spending replaces national expenditure to a large extent.

The second share of EU spending goes to regional development (34% for the period 2014-2020). EU funding for regional and social development is an important source for key investment projects. In some EU countries that have otherwise limited means, European funding finances up to 80% of public investment. However, EU regional spending does not just help poorer regions. It invests in every EU country, supporting the economy of the EU as a whole.

6% of the EU budget goes for the administration of all the European Institutions, including staff salaries, pension, buildings, information technology, trainings, translations and European schools.

Economy of Jersey

The economy of Jersey is largely driven by international financial services and legal services, which accounted for 40.5% of total GVA in 2010. Other sectors include construction, retail, agriculture, tourism and telecommunications.In 2008 Jersey’s gross national income per capita was among the highest in the

world.In 2011 the island's economy, as measured by GVA, declined by 1% to £3.6 billion.

European Union Solidarity Fund

The European Union Solidarity Fund (EUSF) was founded in 2002. Its objective is to provide assistance to European Union member states when large-scale disasters occur. Catastrophes are considered to be large-scale if the estimated direct cost of damage exceeds 3 billion euro or 0.6% of gross national income of the country concerned. Since its inception, the Fund has provided assistance to member states as a result of 56 disasters including earthquakes, forest fires, drought, storms and floods. According to a European Commission report, Italy and Germany have been the leading beneficiaries of these emergency funds, though in total 23 states have received support.

Fishing industry in Greenland

The fishing industry in Greenland is very important to the national economy of Greenland and local food supply. It is the source of many people's livelihoods all across the country, employing some 6,500 out of a national population of 56,452 people (2010).

Fishing exports from Greenland in the past 20 years are accounted at about 90% of the country's total exports with international firms finding it a profitable business. Exports are mostly to USA, Japan, Norway, Thailand, Germany, Great Britain, Iceland and Denmark. The contribution of fishing industries to the economy of Greenland as a whole is estimated to be more than 50%; contribution to gross national income of the country is reported to be as high as 20%.The fish that dominate the Greenlandic fishing industry are mainly shrimps, cod, halibut and salmons. They are caught and processed in Greenland and then are sold, often exported in frozen cans. The center of the fishing industry lies in the south of the country, the main hub is in Disko Bay in the southwest.

Gross national income in the European Union

Gross national income at market prices in the European Union of 27 Member States (GNI) amounted to EUR 25000 per inhabitant in 2008. In 2009 GNI in EU-27 fell by -5.5% over the year 2008.

In 2007, the highest per capita GNI measured in purchasing power standards (PPS) was recorded for Luxembourg (more than twice of the EU-27 average) and the lowest was recorded for Bulgaria (less than half of the EU-27 average). Estonia, Ireland, Latvia and Lithuania were the Member States that in 2009 suffered the most from the recession experiencing declines of more than 10% in GNI (measured in PPS) over 2008.

Health in Malaysia

Malaysia is classified by The World Bank as upper middle income country and is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. Malaysia's HDI value for 2015 was recorded at 0.789 and HDI rank no 59 out of 188 countries and territories on the United Nations Development Programme's Human Development Index. In 2016, the population of Malaysia is 31,000 millions; Total expenditure on health per capita (Intl $, 2014) is 1040; Total expenditure on health as % of GDP (2014) was 4.2 Gross national income (GNI) per capita (2011 PPP$) was recorded at 24,620

Human Development Index

The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher. It was developed by Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Meghnad Desai of the London School of Economics, and was further used to measure a country's development by the United Nations Development Program (UNDP)'s Human Development Report Office.The 2010 Human Development Report introduced an Inequality-adjusted Human Development Index (IHDI). While the simple HDI remains useful, it stated that "the IHDI is the actual level of human development (accounting for inequality)", and "the HDI can be viewed as an index of 'potential' human development (or the maximum IHDI that could be achieved if there were no inequality)". The index does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking for some of the most advanced countries, such as the G7 members and others.The index is based on the human development approach, developed by Amartya Sen, often framed in terms of whether people are able to "be" and "do" desirable things in life. Examples include—Being: well fed, sheltered, healthy; Doings: work, education, voting, participating in community life. The freedom of choice is central—someone choosing to be hungry (as during a religious fast) is quite different from someone who is hungry because they cannot afford to buy food, or because the country is in a famine.

List of companies of Botswana

Botswana is a landlocked country located in Southern Africa. A mid-sized country of just over 2 million people, Botswana is one of the most sparsely populated nations in the world. Around 10 percent of the population lives in the capital and largest city, Gaborone. Formerly one of the poorest countries in the world—with a GDP per capita of about US$70 per year in the late 1960s—Botswana has since transformed itself into one of the fastest-growing economies in the world. The economy is dominated by mining, cattle, and tourism. Botswana boasts a GDP (purchasing power parity) per capita of about $18,825 per year as of 2015, which is one of the highest in Africa. Its high gross national income (by some estimates the fourth-largest in Africa) gives the country a modest standard of living and the highest Human Development Index of continental Sub-Saharan Africa.

List of countries by GNI (PPP) per capita

This article includes a list of countries of the world sorted by their Gross National Income (GNI) per capita at purchasing power parity (PPP). For rankings regarding wealth, see list of countries by wealth per adult.

List of countries by GNI (nominal) per capita

This is a list of countries by gross national income per capita in 2017 at nominal values, according to the Atlas method, an indicator of income developed by the World Bank.

List of development aid country donors

International development aid is given by many non-private donors. The first table is based on official development assistance (ODA) figures published by the OECD for members of its Development Assistance Committee (DAC). Non-DAC members included in the OECD's publishing are listed separately.

Sweden made the largest contribution as a percentage of gross national income (GNI) at 1.40% and the United Nations’ ODA target of 0.7% of GNI was also exceeded by the UAE, Norway, Luxembourg, Denmark, the Netherlands, and the United Kingdom. The European Union accumulated a higher portion of GDP as a form of foreign aid than any other economic union. The largest donor countries in 2015 were the United States, the United Kingdom, Germany, Japan and France, though China, acting outside the DAC apparatus, made higher donations overall than any individual country, with more than double the GNI percentage of the United States.

List of sovereign states in Europe by GNI (PPP) per capita

This is map and list of European countries by Gross national income (PPP) per capita for year 2017 from World Bank. Countries in green have more than $32,000, yellow $18,000-$32,000 and red below $18,000 GDP (PPP) per capita

List of sovereign states in Europe by GNI (nominal) per capita

This is a map of European countries by GNI (Gross national income nominal) per capita for year 2018. High income in purple ($12,056 or more, as defined by the World Bank), upper middle income in orange ($3,896 and $12,055) and lower middle income ($996 and $3,895) in red.

Modified gross national income

Modified gross national income, Modified GNI or GNI* was created by the Central Bank of Ireland in February 2017 as a new way to measure the Irish economy, and Irish indebtedness, due to the considerable distortion that the base erosion and profit shifting ("BEPS") tools of U.S. multinational tax schemes, were having on Irish GNP and Irish GDP. While a "distorted GDP-per-capita" is a known feature of corporate–tax havens, Ireland was the first to replace its GDP/GNP metrics.

By 2014, Irish GDP had inflated to 130% of Irish GNI, whereas for the EU–28 aggregate , GDP is equal to GNI. In October 2016, Ireland announced that GDP rose 26.3% in 2015, implying Irish GDP was over 150% of Irish GNI. The 2015 growth was due to Apple's Q1 2015 restructuring of its hybrid–double Irish BEPS tool, then under investigation by the EU Commission for illegal avoidance of Irish taxes during 2004–2014, into a new capital allowances for intangible assets Irish BEPS tool (known as the "Green Jersey"). Nobel Prize-winning economist, Paul Krugman, labeled the 2015 GDP growth, since revised to 34.4%, as "leprechaun economics".

Economists, including Eurostat, note that Irish Modified GNI (GNI*) is still distorted by certain Irish BEPS tools and U.S. multinational tax planning activities in Ireland (e.g. contract manufacturing); and that Irish BEPS tools distort aggregate EU–28 data, and the EU–U.S. trade deficit.Ireland's public § 2018 Debt metrics differ dramatically depending on whether Debt-to-GDP, Debt-to-GNI* or Debt-per-Capita is used.In August 2018, the Central Statistics Office (Ireland) (CSO) restated table of § Irish GDP versus Modified GNI (2009–2017) showed GDP was 162% of GNI* (EU–28 2017 GDP was 100% of GNI). The CSO do not list GNI* in their Key Summary Economic Indicitors, but only quote GDP, GNP and Debt-to-GDP, while the Irish National Treasury Management Agency, who raise debt for Ireland in the capital markets, only quote Debt-to-GDP.

At this point, multinational profit shifting doesn't just distort Ireland’s balance of payments; it constitutes Ireland’s balance of payments.

Official development assistance

Official development aid (ODA) is a term coined by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure aid. The DAC first used the term in 1969. It is widely used as an indicator of international aid flow. It includes some loans.

Most ODA comes from the 30 members of the DAC, or about $135 billion in 2013. A further $15.9 billion came from the European Commission and non-DAC countries gave an additional $9.4 billion. Although development aid rose in 2013 to the highest level ever recorded, a trend of a falling share of aid going to the neediest sub-Saharan African countries continued.

Per capita income

Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

World Bank high-income economy

A high-income economy is defined by the World Bank as a country with a gross national income per capita of US$12,056 or more in 2017, calculated using the Atlas method. While the term "high-income" is often used interchangeably with "First World" and "developed country", the technical definitions of these terms differ. The term "first world" commonly refers to countries that aligned themselves with the U.S. and NATO during the Cold War. Several institutions, such as the Central Intelligence Agency (CIA) or International Monetary Fund (IMF), take factors other than high per capita income into account when classifying countries as "developed" or "advanced economies". According to the United Nations, for example, some high-income countries may also be developing countries. The GCC countries, for example, are classified as developing high-income countries. Thus, a high-income country may be classified as either developed or developing. Although the Holy See is a sovereign state, it is not classified by the World Bank under this definition.

Purchasing power parity (PPP)
Nominal
Growth rate
Gross national income (GNI)
Countries by region
Subnational divisions

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