Gross value added

Gross value added (GVA):
  • Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy.
  • Relationship to gross domestic product
  • GVA is linked as a measurement to gross domestic product (gdp), as both are measures of output. The relationship is defined as:
  • GVA + taxes on products – subsidies on products = GDP
Gross fixed capital formation:
  • Gross fixed capital formation (GFCF) refers to the net increase in physical assets (investment minus disposals) within the measurement period.
  • It does not account for the consumption (depreciation) of fixed capital, and also does not include land purchases.
  • It is a component of expenditure approach to calculating GDP.

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