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 44.778 per inhabitant in 2020.

In 2007, the highest per capita GNI measured i
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.

Definition of GNI

GNI
is defined in accordance with the European system of national and regional accounts. GNI represents tota
primary income
receivable b
resident institutional unitscompensation of employeestaxes on production and imports
les
subsidiesproperty income
(interest, dividends and reinvested earnings fro
foreign direct investment
receivable less payable)
gross operating surplus
and gross mixed income. It corresponds to the better known gross domestic product
GDP
minus primary income payable b
resident units
to non-resident units, plus primary income receivable by resident units from the rest of the world. Technically speaking, the GNI is a balancing item of th
allocation of primary income account
in the sequence of accounts for the total economy. Loosely speaking, it is the sum of domestic and foreign income earned by the resident population of a country. It is worth noting that GNI is income from productive activities excluding any capital gains and losses (also known as "holding gains and losses") resulting from price changes of fixed or financia
assets
(for example: price changes on the stock market have no direct impact on GNI).

Net national income differs from gross national income by the amount o
consumption of fixed capital
deducted.

GNI and the EU budget

More than three quarters of th

is based on the member states' contributions calculated as a uniform percentage rate applied to the sum of all the member states' GNIs.
The GNI-base

is governed b
Council Regulation (EC, Euratom) 1287/2003 of 15 July 2003 on the harmonisation of gross national income at market prices
(the GNI regulation), which lays downs the definition and calculation of GNI. The GNI regulation also specifies the provisions for the notification of the data and related methodological information by the member states to the European Commission
Eurostat
. Furthermore, the GNI regulation establishes the procedures to facilitate the verification of the GNI base for own resources, and, where necessary, the improvement of the comparability, reliability and exhaustiveness of the member states' GNI estimates. Eurostat validates the data calculated and transmitted by the member states.L. Nørlund: National accounts at the heart of EU policies
SIGMA – The Bulletin of European Statistics 03/2008
p. 15 It is responsible fo
monitoring GNI for own resource purposes
for assessing the quality of the calculations and for verifying compliance with ESA 95 rules and related European law. Eurostat also calculates the European aggregates of GNI based on the national results transmitted by the member states.

See also

*List of European countries by GNI (nominal) per capita
*List of European countries by GNI (PPP) per capita

Notes

E-learning

Statistics Finland: e-learning course on national accounts

External links

*
Eurostat – Statistics Explained – All articles on national accountsNational accounts on Eurostat's website
*Statistics Netherlands
Gross National Income Inventory (ESA 95) 2001 – The Netherlands
The Hague, December 2008
*F. Malherbe
Le site de la comptabilité nationale
National account website (in French language)

{{DEFAULTSORT:Gross National Income In The European Union
Economy of Europe
National accounts