Definition
- Net primary income from abroad
- Net primary income from abroad is the wages, interest, dividends and profits residents earn from abroad, minus those paid out to foreign residents.
Example
Can you think of an example of net primary income from abroad?
UK firms' factories abroad send home £50 billion of profit, and foreign owners of UK firms take out £35 billion: a net inflow of £15 billion.
Test yourself
Can you name the three adjustments that take a country's GDP to a figure fit for comparing living standards?