aukaverðmæti

Aukaverðmæti, the Icelandic term for value added, refers to the contribution made by a firm, sector, or territory to the economy through the production of goods and services. It is calculated as the difference between the value of output (sales or production value) and the value of intermediate consumption (inputs such as raw materials, energy, and services purchased from other firms). This measure excludes taxes and subsidies on products, making it a key indicator of the net production output of an economic unit.

In national accounts, the sum of all value added across industries equals Gross Domestic Product (GDP). Value added is also used at regional levels to assess the economic performance of municipalities or regions, enabling comparisons of productivity and development. Internationally, it is the basis for many statistical compilations, such as production accounts, value-added GDP per capita, and sectoral growth rates.

Because it strips away the effects of intermediate inputs, value added provides a clearer picture of the economic contribution of each sector than sales or revenue figures alone. It is therefore essential for policymakers, economists, and analysts when evaluating economic efficiency, productivity, and the impact of subsidies or taxes on production. Aukaverðmæti is a standard component of the International Monetary Fund’s World Economic Outlook and the OECD’s national accounts framework, and it is compiled by Statistics Iceland for national statistical reporting.