Countries measure their national incomes for various reasons which include:
(i) It gives an indication of the standard of living of the country through the measure of per capita income.
(ii) It helps the country to determine the growth rate of the economy.
(iii) The national income figure determines the country's contribution to international organisation.
(iv) The per capita income which is obtained from the national income estimate is used to compare the standard of living with other countries
(v) The national income estimate is vital for economic policy and planning.
(vi) Measured through the output approach, it enables the country to know the performance of the various sectors of the economy.
(vii) The national income data gives an idea of the pattern of expenditure of households.