GDP gives the picture from the consumers? side, while GVA gives the picture from the producers? side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a year". Here is my question, if both GDP and GVA are 'produced' side according to definition then why GDP from consumer's side and GVA from producer's side?
dear student
GDP or gross domestic product means the total value of final goods and services produced in a country in one year. GDP takes into account only the final value of goods and services i.e. the value or price at which goods/services are available in the market for the consumers. GDP shows the demand perspective of the economy because of this the GDP gives the picture from the consumer side.
GVA or gross value added is an economic productivity metric that measures the contribution of a corporate subsidiary, company or municipality to an economy, producer, sector or region. As it measures the productivity of the producers in the economy it is said to depict the picture of the state of economic activity from the producer's side.
regards
GDP or gross domestic product means the total value of final goods and services produced in a country in one year. GDP takes into account only the final value of goods and services i.e. the value or price at which goods/services are available in the market for the consumers. GDP shows the demand perspective of the economy because of this the GDP gives the picture from the consumer side.
GVA or gross value added is an economic productivity metric that measures the contribution of a corporate subsidiary, company or municipality to an economy, producer, sector or region. As it measures the productivity of the producers in the economy it is said to depict the picture of the state of economic activity from the producer's side.
regards