For decades, GDP has been seen as the dominant economic indicator. In this series of links I've put together some articles that explore what GDP is, and why it might have only limited value when considering issues like 'development', 'standard of living' and 'environmental sustainability'.
Illegal drugs and prostitution are worth 0.7pc of GDP, which is roughly the same proportion as agriculture, gambling and accommodation services which includes hotels, bed and breakfasts and caravan parks. They are worth more than advertising, which is 0.5pc of GDP, and double the contribution of real estate activities, at 0.35pc.
The issue of measuring economic activity - and hence GDP - is a really great topic to dig into. Here's an extra link from the Economist, which notes that if activity in informal industries and rural areas were properly measured, India's GDP would look bigger and more stable, and the.
Measuring the size of an economy is difficult on so many levels. Of course, there's always the GDP debate, which asks about the best way to measure economic and social progress. But even measuring GDP is a huge challenge. Nigeria has just experienced a vast 89% increase in GDP having 'rebased' its figures..
At some point the United States 'overtook' Britain as a global power and many people fret (or celebrate) that one day China will 'overtake' the US. I've used inverted commas on purpose. What does 'overtake' mean? If the conversation is between economists, they are probably talking about the crucial concept.
Around the world, there is enormous enthusiasm for the type of technological innovation symbolised by Silicon Valley. In this view, America's ingenuity represents its true comparative advantage, which others strive to imitate. But there is a puzzle: it is difficult to detect the benefits of this innovation in GDP statistics.
There are big changes coming to the national accounts next month, writes Anthony Reuben. I've already written about how illegal drugs and prostitution are going to be included in the calculation of gross domestic product (GDP), which is the measure of all the goods and services produced by an economy.
The race seems to be on (Penny got ahead of me on this) to find ways to gauge the level of economic activity. The most obvious start point is to use a tool like the BBC's Economy tracker which includes the clear favourite of GDP, inflation and unemployment. But as.
If the rich world aimed for minimal growth, would it be a disaster or a blessing? It would be a disaster: Adam Posen ECONOMIES naturally grow. People innovate as they go through life. They also look around at what others are doing and adopt better practices or tools.
Mad Max: an unlikely picture of the future of our planet Not many people are as extreme as that. Even so, there is a widespread view that we have to place limits on growth, or at least be very careful about how we control it, if we are not to end up living in a world that makes the landscape of Mad Max look, by comparison, like the Home Counties.
Living standards should become the central measure of Britain's economic performance, according to a Fabian Society report which recommends a complete overhaul of how success is measured. The left-leaning thinktank says the traditional yardsticks of growth - inflation and unemployment - are "totally inadequate" and ought to be replaced by 20 new indicators that would each have goals that could be tracked.
Here's a great topic for an economics debate. National income is still lower than before the financial crash. We have a 'cost of living crisis'. Yet it's possible to argue that life is better now than it was in 2005. How can that point be made without being laughed out.
Poor GDP. Everyone seems to be rounding on the once highly regarded economic measure. Gross domestic product - a measure of the value of goods and services a country produces - is perhaps the most powerful statistical indicator in history, and has a huge influence on global policy.
A data release consistently noted for its importance among businesses, GDP has come under scrutiny and was recently overhauled for major economies. Is it still a useful measure? Well, when we want to assess our job prospects, we want to know how the economy is doing.