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Value-added measures the value of wages and salaries paid to workers plus
business profits. Unlike gross output or production it is not consistent
with sales of an industry. Value-added shares vary widely from 30% of gross
output to around 70-80% in some service industry groups. Value-added data
is available more frequently than gross output data and is often used as a
close to show period to period growth. |
Data Source: Value-added estimates are based on gross
output data combined with specific value-added data available from OECD and
national sources. |
Forecasting Methods: Value-added is tied closely to
gross output. Differences in growth rates between production and
value-added reflect differences in rates of change in employment, real
wages, and the share of foreign made products in intermediate inputs.
Value-added for all industry and service categories is scaled to total GDP
making this a fully consistent forecast with the latest Oxford Economic
Forecast for GDP growth. |
Applications: Value-added series are a close substitute
for gross output. |
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