Domestic product
The domestic product is a production indicator d. This means that it is used to indicate the value of all goods and services produced domestically in a period , i. H. within the geographic boundaries of an economy. This also includes goods that are produced by companies in Germany that are owned by foreigners. However, it does not include goods that domestic companies have produced abroad. The domestic product is an indicator of the economic performance of an economy. A distinction is made between gross domestic product (including depreciation ) and net domestic product . There are three approaches to calculating the domestic product, but each of them (mathematically) delivers the same result, the
In the production approach , the production of a period ( output value ) after deduction of the inputs (one obtains the gross value less), the use of financial charges plus (one obtains the adjusted gross value) of the net taxes (taxes less subsidies) is calculated; In the usage calculation, the income from the total economic production account is included in your
- consumptive or
- investment use (gross: including depreciation )
- or in their use as export minus imports
considered, in the distributional calculation, the distribution of GDP is based on
- Wage income on the one hand ( compensation of employees ) and
- Capital income on the other hand ( corporate and property income , gross: including depreciation).
From domestic to domestic product
While in the case of inland a certain territory (inland) with the production facilities located on it is considered, in the case of national income the residents who are resident in this territory are considered. They can get primary income from abroad, which would then have to be added to the domestic product in order to receive the domestic product. In addition, primary income was generated in Germany, which flows to people who live abroad. These have to be deducted from the domestic product in order to arrive at the domestic product. The domestic product is thus the domestic product minus the primary income that flowed to the rest of the world and adds the primary income that flowed to residents from the rest of the world. In the category "resident", it depends on the place of residence, not on the citizenship.
Valuation at market prices
The domestic product, both gross and net, and the national income, gross and net, are valued at market prices, that is, including production and import taxes minus subsidies.