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Glossary:Gross value added at market prices

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Gross value added (GVA) at market prices is output at market prices minus intermediate consumption at purchaser prices; it is a balancing item of the national accounts' production account:

  • GVA at producer prices is output at producer prices minus intermediate consumption at purchaser prices. The producer price is the amount receivable by the producer from the purchaser for a unit of a product minus value added tax (VAT), or similar deductible tax, invoiced to the purchaser.
  • GVA at basic prices is output at basic prices minus intermediate consumption at purchaser prices. The basic price is the amount receivable by the producer from the purchaser for a unit of a product minus any tax on the product plus any subsidy on the product.

GVA at factor costs is not a concept explicitly used in national accounts. It can be derived by subtracting other taxes on production from GVA at basic prices and adding other subsidies on production.

GVA can be broken down by industry. The sum of GVA at basic prices over all industries plus taxes on products minus subsidies on products gives gross domestic product. Gross value added of the total economy usually accounts for more than 90 % of GDP.

By subtracting consumption of fixed capital from GVA the corresponding net value added (NVA) is obtained. NVA can also be measured at producer prices or basic prices or factor costs.

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