capital consumption allowance

capital consumption allowance definition - finance
The percentage of the gross domestic product (GDP) that is due to depreciation. GDP minus capital consumption allowance equals net national product. The capital consumption allowance measures the amount of expenditure that a country needs to undertake to simply maintain, as opposed to grow, its productivity.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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