Net National Product - Definition and Overview

Net National Product (NNP) is Gross National Product (GNP) minus depreciation. Depreciation measures the amount of GNP that must be spent on new capital goods to maintain the existing capital stock.

NNP is the amount of goods in a given year which can be consumed without reducing the amount which can be consumed in the future. Setting part of NNP aside for investment permits the growth of the capital stock (see economic growth), and the consumption of more goods in the future.