Net domestic product

Net domestic product

 

 

Net domestic product

 

Meaning of Net domestic product

The net domestic product (NDP) measure the production aggregated by the resident economic agents during the period (GDP), net of the consumption of fixed capital (CFC), which corresponds to the usury cost of the capital during the same period. Also, the net disposable income is obtained by deducting the CFC of the gross disposable income. It's better to compare the stock of assets with net macroeconomic flows rather than gross flows (NDP rather than GDP, net income rather than gross income). Indeed, by disregarding effects of revaluation or the other changes of volume, the national wealth increases from one year to the next with the net savings of agents, that is the part of the net national income which they do not allocate to the final consumption during period.

 

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Net domestic product

 

Net domestic product

 

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Net domestic product

 

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Net domestic product