Increased Gross Value Added (GVA)

Monitoring

Annual rate of GVA per head of population at current basic prices

Gross value added (GVA) is a measure of the increase in the value of the economy due to the production of goods and services. It is measured at current basic prices, which include the effect of inflation, excluding taxes (less subsidies) on products (for example, Value Added Tax). GVA plus taxes (less subsidies) on products is equivalent to gross domestic product (GDP).

GVA per head of population is a useful way of comparing locations of different size and is an important indicator for both domestic and European policy purposes. Total GVA estimates in millions of pounds (£m) are divided by the total resident population of a region (including the economically inactive) to give GVA per head in pounds (£). Whilst GVA per head can be a useful way of comparing regions of different size, comparisons for rural areas can be affected by commuting flows into or out of the region and by population profiles. In the case of Shropshire the number of economically inactive rates are affected by an older age profile and the net out commuting to neighbouring areas to achieve higher pay rates are both likely to impact on the total GVA figure per head.

The latest GVA (2016) per head for Shropshire stands at £19,961

The growth in GVA from 2006 to 2016 was 21.33% slightly lower than the West Midlands rate of 22.8% and lower than the rate for England of 24.5%