Economics Real Vs Nominal Gdp Questions
The difference between GDP (Gross Domestic Product) and GVA (Gross Value Added) growth rate per capita lies in the way they measure economic activity.
GDP measures the total value of all goods and services produced within a country's borders, regardless of whether the production is done by domestic or foreign entities. It includes both the value added by various industries and any taxes and subsidies.
On the other hand, GVA measures the value added by each individual industry or sector of the economy. It excludes taxes and subsidies, focusing solely on the value added at each stage of production.
The growth rate per capita refers to the rate at which these measures of economic activity are increasing or decreasing on a per-person basis. It takes into account changes in population size to provide a more accurate representation of economic performance relative to the population.
In summary, while GDP measures the total value of all economic activity within a country, GVA focuses on the value added by each industry or sector. The growth rate per capita considers changes in population size to provide a more meaningful measure of economic performance.