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 calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. Total GDP for the economic territory consists of summing the gross value added of all industries or sectors for a given province or territory. The GDP at market prices is obtained by adding taxes less subsidies on products to the sum total of value added for all industries.

For example, if the total output of the automotive industry was $10 billion worth of cars and $6 billion of material inputs (steel, plastic, electricity, business services, etc.) was used to produce the cars, the value added for the automotive industry would be $10 billion in output less $6 billion in intermediate consumption, equalling $4 billion in value added.

The following tables include estimates of gross domestic product by province and territory by industry using the production approach to measure GDP.