Gross Domestic Product by Production Approach
Gross domestic product (GDP) is the total unduplicated value of the goods and services produced in the economic territory of a country or region during a given period.
GDP can be measured in three ways. The production approach, the income approach and the expenditure approach.
The production, or value added, approach consists of summing the gross value added of all industries (resident sectors). For each industry, this involves first determining its output and then subtracting the goods and services that were used up in the process of generating that output. The goods and services that are used up are referred to as intermediate consumption (or simply inputs). The difference between an industry’s output and its intermediate consumption is its gross value added.
The GDP at market prices is obtained by adding taxes less subsidies on products to the sum total of value added for all industries.