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GDP is the final result of the production activities of all permanent units in a country (or region) at market prices in a certain period of time. There are three forms of GDP, namely, value form, income form and product form. From the perspective of value form, it is the difference between the value of all goods and services produced by all permanent units and the value of all non-fixed assets goods and services invested in the same period, that is, the sum of the added value of all permanent units; From the perspective of income form, it is the sum of the initial income created by all permanent units and distributed to permanent units and non-permanent units in a certain period of time; From the product form, it is the value of goods and services produced by all permanent units MINUS the import value of goods and services in a certain period of time. In actual accounting, there are three methods to calculate GDP, namely, production method, income method and expenditure method. The three methods reflect GDP and its composition from different aspects, and the theoretical calculation results are consistent.
GNP is the final result of the initial income distribution of all permanent units in a country (or region) within a certain period (usually one year). It is the total value of the final products and services owned by the owners of domestic production factors in a certain period of time. Equal to GDP plus net factor income from abroad. The main advantages of gross national product as a comprehensive economic indicator are: first, it only calculates the value of the final product, not the value of the intermediate product, so it does not include the part of repeated calculation. Second, the added value of both material production departments and all service departments is considered, which reflects the changes of modern industrial structure and the role of tertiary industries such as education, science and technology and finance in social economy.
Potential GDP refers to the maximum output that a country can produce under the condition of making full use of existing economic resources in a certain period, that is, the gross domestic product that the country can produce under the condition of full employment. The GDP here reflects the maximum output capacity of this period.