A high and rising ratio of Gross Domestic Product (GDP) to Gross National Product (GNP) is often seen as a bullish signal for the economy. This is because it usually implies foreign investors have been investing in the economy. GDP measures the value of production in South Africa, whereas GNP measures the income earned by South Africans in South Africa and in other economies. The rise in the ratio implies that the value of production by multinationals with operations in South Africa has been growing faster than South African multinationals outside of South Africa.
