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Gross output

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Gross Output is an economic concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the US National Income and Product Accounts (NIPA). It is equal to the value of net output or GDP (also known as gross value added) plus intermediate consumption.

Gross Output represents, roughly speaking, the total value of sales by producing enterprises in an accounting period (e.g. a quarter or a year), before subtracting the value of intermediate goods used up in production.

To obtain a measure of gross value added, the value of intermediate goods and services must be subtracted. Net value added is obtained by additionally subtracting consumption of fixed capital (depreciation).

The statistical definition of Gross Output is dependent upon the definition of production applied. Typically some economic flows and activities are excluded from coverage in calculating the value of Gross Output, on the ground that they are unrelated to production in the domestic economy. These include foreign transactions, property income, transfers, and various government disbursements, housework and voluntary work.

See also