The services of a mechanic fixing the radiator of his own car will not be included in GDP. The Gross Domestic Product (GDP) measures the total economic output of a country, specifically the value of all final goods and services produced within a given period. In this case, when the mechanic performs the repair on his own vehicle, he is not engaging in a transaction that generates income or value added in the market.
To elaborate, GDP only accounts for services that are exchanged in the market, where money is involved and a proven transaction occurs. Since there’s no monetary exchange happening when the mechanic fixes his own car, this activity does not contribute to the market economy.
Additionally, if the mechanic were to fix someone else’s car and charge for the service, that work would be included in GDP because it reflects a service performed for compensation, thereby contributing to economic activity.