does the gdp include the spending on the war by the military?

Answer 1

yes, which has a few economic implications. (i) increases in GDP during wartime are correlated to overall debt levels (ii) figures that quote military spending as a percentage of GDP should be evaluated with this concept in mind (i.e. that the GDP is inflated by military spending).

Consider an example of a small country at war that spends $1 billion on the war and has a $1.5 billion dollar GDP. If the GDP did not include military spending, it would only be $0.5 billion. So military spending as a percentage of GDP would be 200%, which would be an illogical result.

Answer 2

gdp stands for gross domestic product

the spending by the military to aquire various equipment and goods from the countries industries are included in gdp

but the expenditure for manpower and likes is not included