“if the GNI is much higher than the GDP this can mean that the country receives large amounts of foreign aid”
The lone country in their accompanying graph where this inequality holds is Norway. I find it hard to believe that Norway is the recipient of any foreign aid…
In Norway’s case, the reason is probably their gigantic sovereign wealth fund. Income from foreign investments held by nationals is included in GNI (as it’s income flowing in to the country) but not included in GDP (because it’s not economic activity that takes place in the country itself).
“if the GNI is much higher than the GDP this can mean that the country receives large amounts of foreign aid”
The lone country in their accompanying graph where this inequality holds is Norway. I find it hard to believe that Norway is the recipient of any foreign aid…
In Norway’s case, the reason is probably their gigantic sovereign wealth fund. Income from foreign investments held by nationals is included in GNI (as it’s income flowing in to the country) but not included in GDP (because it’s not economic activity that takes place in the country itself).