Where:
C = Consumer expenditure
I = Investment expenditure (including inventory)
G = Government expenditure
X = Total exports
M = Total imports
All imports go either to C, I, or G, so they are net neutral for GDP
Where:
C = Consumer expenditure
I = Investment expenditure (including inventory)
G = Government expenditure
X = Total exports
M = Total imports
All imports go either to C, I, or G, so they are net neutral for GDP