Yes, capital goods are included in the calculation of GDP. Capital goods refer to the long-term assets that businesses use to produce goods and services. This includes machinery, buildings, vehicles, and equipment. They are essential for the production process and are considered a vital component of economic activity.
When calculating GDP, we consider the total value of finished goods and services produced within a country in a given period. Investments in capital goods are counted as part of this calculation because they contribute to the production capacity of the economy. This means that when companies invest in capital goods, it reflects their confidence in future growth and productivity, which ultimately influences GDP. Therefore, capital goods are not only included but are also an important indicator of economic health and investment levels.