Are depreciations calculated in GDP

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1292219

2026-03-18 06:05

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No, depreciations are not directly included in the calculation of GDP. GDP measures the total value of goods and services produced in an economy within a specific period, using either the production, income, or expenditure approach. However, when calculating Gross National Product (GNP) or Net National Product (NNP), depreciation is accounted for by subtracting it from the gross figures to reflect the net value after accounting for capital consumption.

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