Gross value added (GVA)
Gross value added (GVA) is an economic metric that quantifies the value added to goods and services produced. This is representative of the contribution to the economy of producers, or the wider industry or sector.
It can be determined by the production approach, the income approach or the expenditure approach:
- The production approach estimates the value of output goods or services minus the value of inputs to the production process.
- The income approach determines the incomes earned by individuals and corporations producing the goods or services.
- The expenditure approach determines total expenditure on goods and services produced in the domestic economy.
GVA is often used in calculating the gross domestic product (GDP, a measure of the state of the economy as a whole).
The relationship between GVA and GDP is:
GVA + taxes on products and services - subsidies on products and services = GDP
This can be restated in order to measure the gross regional domestic product and other measures of the output of entities smaller than the economy as a whole. This can be necessary since the total aggregates of taxes and subsidies on products are only available at the whole economy level:
GDP + subsidies - taxes = GVA
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
- Accounting.
- Base year.
- Best value.
- Capex.
- Commercial management.
- Compound Annual Growth Rate (CAGR).
- Cost-benefit analysis in construction.
- Cost performance index (CPI).
- Cost plans.
- Discounting.
- Internal rate of return for property development.
- Net Present Value.
- Plant acquisition.
- Profitability.
- Value added.
- Value in building design and construction.
- Whole life costs.
- Yield.
Featured articles and news
Change of use legislation breaths new life into buildings
A run down on Class MA of the General Permitted Development Order.
Solar generation in the historic environment
Success requires understanding each site in detail.
Level 6 Design, Construction and Management BSc
CIOB launches first-ever degree programme to develop the next generation of construction leaders.
Open for business as of April, with its 2026 prospectus and new pipeline of housing schemes.
The operational value of workforce health
Keeping projects moving. Incorporating unplanned absence and the importance of health, in operations.
A carbon case for indigenous slate
UK slate can offer clear embodied carbon advantages.
Costs and insolvencies mount for SMEs, despite growth
Construction sector under insolvency and wage bill pressure in part linked to National Insurance, says report.
The place for vitrified clay pipes in modern infrastructure
Why vitrified clay pipes are reclaiming their role in built projects.
Research by construction PR consultancy LMC published.
Roles and responsibilities of domestic clients
ACA Safety in Construction guide for domestic clients.
Fire door compliance in UK commercial buildings
Architect and manufacturer gives their low down.
The new towns and strategic environmental assessments
12 locations of the New Towns Taskforce reduced to 7 within the new towns draft programme and open consultation.
Buildings that changed the future of architecture. Book review.