1. TEAM 4
A S T R I D D E C L E Y N
H E L I E M O N N O Y E U R
A L E X T O M I T A
C A D I E N N E G R I M S H A W
X U A N T H A N H
What’s wrong with GDP?

2. GDP: Definition
 Total market value of all goods and services
produced in a country in a given year
 Measure of economic activity in a country
 GDP/capita
 NOT a measure of personal income
 Indicator of a country’s standard of living

3. GDP: Limitations
 Never designed to measure social or economic
welfare
 Doesn’t account for externalities
 Environmental impact
 Social impact
 Exchange rates

4. GDP: Limitations

5. GDP Alternatives
Genuine Progress
Indicator (GPI)
Measurement of
economic welfare
taking into account the
environmental and
social costs
Human Development Index
(HDI)
Measurement of life
expectancy, education and
income
Ecological footprint Measurement of humand
demand on the earth
ecosystem
Gini coefficient Measure of inequality of
income or wealth
Life satisfaction Measure of well-being

6. Conclusion
 Worldwide concensus
 GDP is a measure, not the only one for economic
activy
 Use a combination of measures to get a full picture