net domestic product
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Net Domestic Product
A country or other geographical unit's gross domestic product less the collective depreciation on its capital assets. For example, the net domestic product may calculate the depreciation on all the factories in a country. In order for an economy to grow, the gross domestic product must exceed the net domestic product; otherwise, this indicates that depreciation on capital assets is outpacing other economic growth.
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net domestic productthe money value of a nation's annual output of goods and services less CAPITAL CONSUMPTION experienced in producing that output. See NATIONAL INCOME ACCOUNTS.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005