Net Domestic Product?

The yearly measure of a country’s economic output is a net domestic product, which is determined by deducting depreciation from the gross domestic product. An increase in NDP indicates improving economic health, whereas a decline indicates stagnation.
NDP measures for capital that has deteriorated over the course of the year as a result of the degradation of homes, vehicles, or machinery. The amount needed to replace such depreciated assets is frequently referred to as capital consumption allowance, and it is accounted for as depreciation. Though GDP is usually used to gauge a country’s economic health, NDP considers the rate at which capital assets decay and need to be replaced. This is critical since failing to respond would result in a reduction in the country’s GDP.

The net domestic product (NDP) equals the gross domestic product (GDP) minusdepreciation on a country’s capital goods.

Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration. The depreciation accounted for is often referred to as “capital consumption allowance” and represents the amount of capital that would be needed to replace those depreciated assets.