Gross value added (GVA) measures the contribution to an economy of an individual producer, industry, sector or region. It is used in the calculation of gross domestic product (GDP). GDP is commonly estimated using one of three theoretical approaches: production, income or expenditure. When using production or income approaches, the contribution to an economy of a particular industry or sector is measured using GVA.
Calculating GDP using GVA
GVA + taxes on products – subsidies on products = GDP
gross value added in the news
In December 2013 the FT’s economics editor looked at differing growth figures for Scotland put out by the Scottish government and the UK Office of National Statistics which raised questions over the strength of the Scottish economy. The differences ended up being probably due to to different methods of calculating the GVA for Scotland.
In January 2014 a report looked at the contribution of the creative industries to the UK economy. Not only had employment in the creative industries risen by 8.6 per cent between 2011 and 2012, against growth of 0.7 per cent for the UK as a whole. In addition, the gross value added of the creative industries increased by 9.4 per cent to £71.4bn in 2012 accounting for 5.2 per cent of the UK economy.