Factor Incomes from Abroad

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Factor Incomes from Abroad

The income a person or company derives from its operations in other countries. Factor incomes from abroad include foreign profits and remittances that workers send back to their home countries. See also: Factor Income.
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Its economic structure comprises 62.4% of services, 20% of agriculture and 17.6% of manufacturing, with a higher share in private and public investments and in net factor income from abroad.
It is computed by dividing Gross National Income (GNI) by population while GNI is obtained by adding Net Factor Income from abroad in GDP at market price.
Net factor income from abroad increased by 4.17 percent in FY 2018 compared to FY 2017.
PAGE: THE STATE BANK IN A REPORT STATED THAT THE NATIONAL SAVING RATE INCREASED TO 13.8 PER CENT OF GROSS DOMESTIC PRODUCT (GDP) MAINLY DUE TO INCREASE IN NET FACTOR INCOME FROM ABROAD. YOUR VIEWS.
If the expected net factor income from abroad is added, the GNP growth rate would be even higher, meaning a steady increase in per capita income in the country, which if properly distributed through fair fiscal policy, could go a long ay in promoting welfare and changing the life patterns of a vast majority of the population.
Net factor income from abroad, which accounts for the difference between GNP and GDP, also surged 19.2% as the peso stabilized against the dollar, encouraging Filipino workers abroad to send more money back home.
Net Factor Income from Abroad [equivalent to] (Investment Income + Workers' Remittances Abroad + Other Private Transfers received by residents from abroad) - (Investment Income + Private Transfers made to nonresidents)........................(i)
He added that net factor income from abroad has increased from Rs.373 billion in 2010-11 to Rs.394 billion in 2011-12 showing a growth of 5.6 percent.
He said that at the same time, national savings have increased to 13.8 percent of GDP, mainly due to net factor income from abroad. 'Consequently, the gap between national savings and investment as a percent of GDP has turned marginally positive,' he added.
This was mainly on account of extraordinary increase in net factor income from abroad, which in turn, was the result of a sharp increase in the inflow of home remittances and foreign direct in investment.
The State Bank in a report stated that the national saving rate had increased to 13.8 per cent of gross domestic product (GDP) mainly due to increase in net factor income from abroad. The consumers have to spend more money in presence of double digit inflation which the country has been facing for the last four years.
He said that at the same time, national savings have increased to 13.8 percent of GDP, mainly due to net factor income from abroad. Consequently, the gap between national savings and investment as a percent of GDP has turned marginally positive, he added.