Gross value added

Gross Value Added (GVA) is an indicator of economic prosperity. It measures the contribution to the economy of each individual producer, industry or sector. This measure is applicable to the UK.

GVA is the difference between gross ouput and intermediate inputs. Gross outputs of a production unit during a given period is equal to the gross value of the goods and services produced during the period and recorded at the moment they are produced, regardless of whether or not there is a change of ownership. Intermediate inputs refer to the value of goods and serices used in the production process during the accounting period.

In 2005 Southampton's economy was worth £4,539 million. This was 35.09% more than in 2000. This is the highest growth in Gross Value Added (GVA) among the areas listed in Table 4, higher than in Portsmouth (31.32%) and Hampshire and the Isle of Wight (34.23%), the South East region (30.81%) and also the overall national rate (29.52%).

In terms of the GVA per head, Southampton performed relatively well in 2005. The value of £20,014 was the highest amongst the comparator areas. The change in absolute numbers of £4,541 per head was higher than the regional average change of £4,216 and that national change of £3,827. Southampton improved its GVA per head by 29.35% which is also higher than in the other areas (with the exception of Hampshire and Isle of Wight). The change is measured between the years 2000 and 2005.