Disadvantages

• It is difficult to calculate/measure the variables accurately since data collection is expensive and time-consuming.
• Most countries use different currencies, hence calculating the GNI could pose problems because of the differences in the exchange rate.
• All countries have a formal and an informal economy and in some countries, the informal economy is not captured in the economic records of the government. ie. in calculating the GDP. As a result, obtaining accurate data from some developing countries can be difficult.
• Some goods and services are unpaid for. ie. volunteering in a charity shop, donating to charity or even parenting are most often left out in the calculation of the GNI.
• It does not take into account regional variations in development.