It has adjusted UK gross value added, a measure of economic output, to exclude energy extraction and use, and also financial and insurance activities.
To that list I'll add another set of figures that will tell us in Wales a great deal - regional Gross Value Added figures.
Gross value added is calculated at the level of branches of the economy as the value of output of goods and services less the value of intermediate consumption.
The standard measure is gross value-added the output of an industry minus the costs of production.
ECONOMIST: The banks' contribution to the economy has been overstated
In finance, however, a lot of the gross value-added comes from making loans.
ECONOMIST: The banks' contribution to the economy has been overstated
Combine the gross value-added figure with the declining share of resources, and you might assume finance has enjoyed a productivity miracle over the past 20 years.
ECONOMIST: The banks' contribution to the economy has been overstated
The consequence of this approach is that when interest margins rise for corporate borrowers, as they did in late 2008, the gross value-added of the banking sector appears to go up.
ECONOMIST: The banks' contribution to the economy has been overstated
The term "Gross" means, that the value added includes the value of fixed capital consumed in the process of production.
In other countries, value-added taxes are taken out of gross box-office receipts, before the money is divided between studios and theaters.
Gross (or net) operating surplus of the economy is the part of value added which remains with producers after deducting outlays related to the remuneration of employees and taxes on production.
What we call the economy, the Gross Domestic Product, is in fact an addition of all of the pieces of value that are added in that economy.
应用推荐