<p>In a closed economy, everything that is consumed necessarily corresponds to the amount of goods produced. Production side and consumer's side are just two ways of adding up, but they will produce the same number.</p>

CC BY-SA 4.0
2019-08-17T19:48:01.890Z
2019-08-17T19:48:01.890Z
E. Sommer
<p>GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a year". Here is my question,  if both GDP and GVA are 'produced' side according to definition then why GDP from consumer's side and GVA from producer's side? I am confused so please clarify my doubt. Here the source <a href="https://www.google.com/amp/s/m.economictimes.com/markets/stocks/news/the-debate-over-the-use-of-gva-and-gdp/amp_articleshow/58905721.cms" rel="nofollow noreferrer">https://www.google.com/amp/s/m.economictimes.com/markets/stocks/news/the-debate-over-the-use-of-gva-and-gdp/amp_articleshow/58905721.cms</a></p>

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2019-08-18T06:10:49.857Z
It's in 4 th point-->4.What is the difference between the two?
Nandy
<macroeconomics><gdp><national-income>
Consumer's side and producer's side
Nandy
# Consumer's side and producer's side

(Asked by: username_0 on 2019-08-17)

GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a year". Here is my question, if both GDP and GVA are 'produced' side according to definition then why GDP from consumer's side and GVA from producer's side? I am confused so please clarify my doubt. Here the source <https://www.google.com/amp/s/m.economictimes.com/markets/stocks/news/the-debate-over-the-use-of-gva-and-gdp/amp_articleshow/58905721.cms>

**Tags:** macroeconomics, gdp, national-income

> **Comments:**
> **username_0**: It's in 4 th point-->4.What is the difference between the two?  

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## 1 answers

### Answer by username_1 on 2019-08-17. Score: 0

In a closed economy, everything that is consumed necessarily corresponds to the amount of goods produced. Production side and consumer's side are just two ways of adding up, but they will produce the same number.


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