Beginners:GDP - What is gross domestic product (GDP)?

What’s covered by GDP?Watch the video explaining what is included in GDPThe value of all final goods and services, therefore excluding intermediate consumption, represents the largest part of GDP. Nonetheless, it also includes the value of goods and services that are going to be used by the producers themselves as investments.In the case of GDP, no distinction is made whether the goods or services produced have a positive or negative impact from a social or environmental perspective. For example, if there is an oil spill in the ocean, the transport of the oil as well as the cleaning work related to this are included in GDP. Example:If an engineering company produces some special machines for its own use, a building company builds new offices for itself, or a business develops software for in-house use, these goods and services are included in GDP, even though they are not actually sold.The same applies if Josefina makes a major change to her house by herself. Just as any construction w...