Which economic indicator is increasingly preferred for measuring national performance by including international financial flows?

Gross National Income (GNI) is increasingly preferred as an economic indicator for measuring national performance because it takes into account the total income earned by a nation's residents, regardless of where that income is generated. This includes not only the income produced within a country (as seen in Gross Domestic Product, or GDP) but also net income received from abroad, such as remittances and income from investments in foreign countries.

By including international financial flows, GNI provides a more comprehensive view of the economic well-being of a nation's residents. For instance, if citizens of a country earn significant income from investments overseas, GNI captures that wealth, reflecting the country’s economic situation more accurately than GDP, which only measures domestic production.

This consideration of international financial flows is particularly important in today's globalized economy, where many countries' growth can be heavily influenced by external investments and income sources. Thus, GNI serves as a better representation of how much income residents of a country possess, regardless of the geographical boundaries where that income originates.