Different strokes: New series leading to diverging trends in GDP, GVA

The revised method of GDP did not only change the base year, but also the way it is computed.

The gross domestic product (GDP) and the gross value added (GVA) seem to be giving conflicting signals on economic recovery during FY21. This happens because of the definition of these two numbers.

For instance, GDP was projected to fall by 8 per cent in fiscal year 2020-21 (FY21) by the second advance estimates (AE), sharper than 7.7 per cent by the first one. On the other hand, GVA is projected to fall 6.5 per cent in the second estimates. The first estimates pegged the figure at less than 7.2 per cent. 

Also, while GDP was projected to fall 1.1 per cent in