Gross value added (GVA):
- Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy.
- Relationship to gross domestic product
- GVA is linked as a measurement to gross domestic product (gdp), as both are measures of output. The relationship is defined as:
- GVA + taxes on products – subsidies on products = GDP
Gross fixed capital formation:
- Gross fixed capital formation (GFCF) refers to the net increase in physical assets (investment minus disposals) within the measurement period.
- It does not account for the consumption (depreciation) of fixed capital, and also does not include land purchases.
- It is a component of expenditure approach to calculating GDP.