Imports are neutral to GDP. The reason they're subtracted in the standard formula for GDP is that makes it easier to count. GDP = Consumption + Investment + G

Imports are neutral to GDP. The reason they're subtracted in the standard formula for GDP is that makes it easier to count. GDP = Consumption + Investment + Government Spending + Exports - Imports The reason that imports are subtracted is because Consumption, Government Spending and Exports all have a domestic and imported component. So instead you could have GDP = (Domestically produced consumption) + Investment + (Government spending on domestic products) + (Domestically produced Exports) and not subtract imports. But that's a lot harder to measure than measuring totals and subtracting imports.