BANKING AFFAIRS

Detailed explanation-1: -Gross value added (GVA) is defined as output (at basic prices) minus intermediate consumption (at purchaser prices); it is the balancing item of the national accounts’ production account. GVA can be broken down by industry and institutional sector.

Detailed explanation-2: -What is Gross Value Added? Gross value added (GVA) is the measure of the total value of goods and services produced in an economy( area, region or country).

Detailed explanation-3: -GVA= GDP + subsidies on products – taxes on products. As the total aggregates of taxes on products and subsidies on products are only available at whole economy level, Gross value added is used for measuring gross regional domestic product and other measures of the output of entities smaller than a whole economy.

Detailed explanation-4: -The difference between GDP and GVA While the GDP measures the total value of products and services that the country manufactures or delivers, the GVA measures the value added to the product in order to enhance its worth.

Detailed explanation-5: -GVA or GDP In the national accounts, gross domestic product (GDP) is measured by the output, income and expenditure approaches. In the output approach, we use gross value added (GVA) as a proxy for GDP. GVA is the value of an industry’s outputs less the value of intermediate inputs used in the production process.