Understanding Bank Indonesia Certificates and their Impact on the Country’s Economic Stability Net National Income Calculation Method Net National Income Calculation Method illustration of net national income. source envato Calculation of Net National Income (NNI) involves several main steps and components in the economic analysis of a country. The following is the general NNI calculation method: . Calculating Gross National Income (GNI) The first step in calculating NNI is calculating the GNI of a country.
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GNI is the total income receive by all citizens of a country, including at home and abroad, during a certain period of time. GNI can be calculate by adding up income components such as wages, interest, rent and net profit. . Reucing Receipts from Netherlands WhatsApp Number Data Abroad (Net Receipts from the Rest of the World) To get NNI, we nee to subtract revenues from abroad ( net exports of income and goods and services ) from GNI. This includes income receive by citizens of a country who work or invest abroad and income receive by foreign citizens who work or invest domestically.
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Reucing Capital Depreciation (Depreciation of Capital) Next, we nee to subtract depreciation or capital depreciation. This is the value of the decline or wear and tear of capital such as equipment. Buildings and infrastructure use in the country’s economic Iran Phone Number List production. The goal is to obtain NNI which is net income after considering capital impairment. . Calculating Net National Income (NNI) After making the above deuctions, we will get the NNI. Which is the amount of net income available to the residents of a country after considering all relevant factors.
