The Economist explains: Why GDP is so difficult to measure | The Economist

MEASURING output is the best way we have of taking the temperature of an economy. But the industry standard, gross domestic product (GDP) has a host of weaknesses. It is reliant on an arbitrary definition of what is productive, so it includes childcare by nannies but not by house-husbands and wives. It takes no account of who is doing the producing, meaning an economy could have a single worker or full employment. It ignores the underground economy to a large extent, guaranteeing that production always undershoots reality. But more than any of these, GDP is extremely difficult to measure.

Source: The Economist explains: Why GDP is so difficult to measure | The Economist

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