Net Material Product (NMP) was the main

macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...

indicator used for monitoring growth in

national accounts National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry ...

of socialist countries during the

Soviet The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nation ...

era. These countries included the

USSR The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nationa ...

and all the

Comecon The Council for Mutual Economic Assistance (, ; English abbreviation COMECON, CMEA, CEMA, or CAME) was an economic organization from 1949 to 1991 under the leadership of the Soviet Union that comprised the countries of the Eastern Bloc#List of s ...

members. NMP is the conceptual equivalent of

Gross Domestic Product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

(GDP) in the

United Nations System of National Accounts The System of National Accounts (often abbreviated as SNA; formerly the United Nations System of National Accounts or UNSNA) is an international standard system of national accounts, the first international standard being published in 1953. Handb ...

, although numerically the two measures are calculated differently. NMP is calculated for the material production sectors only, and excludes most of the service sectors, which are part of GDP. The material production sectors include manufacturing industries, agriculture and forestry, construction, wholesale and retail trade, supply of material inputs, road maintenance, freight transport (but not passenger transport), communication and information services supporting material production, and other material production activities. It is calculated by subtracting the value of all production costs (including the cost of material inputs, depreciation, and labor in production) from the value of output produced in the material production sectors. For comparison with GDP, it is necessary to add back to NMP the value of fixed asset depreciation (which is not subtracted in GDP calculations) and the total value of all services classified as "non-productive" in the socialist system of national accounts (which are part of GDP). These "non-productive" services include health care, education, housing, public utilities, consumer services, communication in the non-productive sector, passenger transport, financial services (banking, credit, insurance), government services, the defense establishment, and social organizations. The tax components subtracted in the calculation of GDP should also be added back to obtain NMP. The economic term that corresponds to Net Material Product in

Russian Russian(s) refers to anything related to Russia, including: *Russians (, ''russkiye''), an ethnic group of the East Slavic peoples, primarily living in Russia and neighboring countries *Rossiyane (), Russian language term for all citizens and peo ...

is Национальный доход (literally: national income). None of the accepted meanings of national income in English matches the meaning in Russian, and Net Material Product was introduced into English usage as the best alternative.

GDP and NMP for USSR 1980–1990

GDP began to be calculated in the

in 1988, based essentially on the

. The table compares the new GDP estimates with the traditional NMP numbers (in billions of current rubles). GDP is seen to be 25%–30% higher than NMP due to depreciation and the "non-productive" service sectors included in GDP but not in NMP. :Source: ''Narodnoye khoziaystvo SSSR 1990'', statistical yearbook of the USSR, p. 5.

NMP growth for Comecon countries

Change in NMP (in constant prices) 1980–1990 (in percent of 1980) :Source: ''Statistical Yearbook of Comecon Countries 1989'', Table 21, p. 59.

References

* * GDP (Валовой внутренний продукт) in ''Finansovo-Kreditnyi Slovar'', Finansy i Statistika, Moscow (1984), vol. I, p. 185 . * ''Narodnoye khoziaystvo SSSR 1990'', statistical yearbook of the USSR, State Committee of Statistics, Finansy i Statistika Publ. House, Moscow (1990), definition of национальный доход (NMP) on p. 687; definition of валовой национальный продукт (GDP) on p. 684 . * ''Statistical Yearbook of Comecon Countries 1989'', Comecon Secretariat, Finansy i Statistsika Publ. House, Moscow (1989), definition of произведенный национальный доход (NMP) on p. 449 . {{Global economic classifications Comecon Economy of the Soviet Union Gross domestic product National accounts

GDP and NMP for USSR 1980–1990

NMP growth for Comecon countries

See also

References