Beyond-GDP indicators

Gross Domestic Product (GDP)

Meaning statusEstablishedSource recordDirect document linkedWhy these are different

Definition

Gross domestic product is the total market value of the final goods and services produced by a country's economy during a specified period, counting all output generated within its borders regardless of who owns the producing resources. It is the world's main measure of economic output, composed under the expenditure approach of consumption plus investment plus government spending plus net exports.

References

Encyclopaedia BritannicaGross domestic product (total market value of goods and services produced by a country's economy in a specified period; final goods and services; expenditure formula C+I+G+NX)

definition

IMF Finance & DevelopmentGross Domestic Product: An Economy's All (monetary value of final goods and services within borders; excludes unpaid work; "gross" takes no account of capital depreciation)

scope and exclusions

Overview

What it means

GDP counts production, not welfare: it excludes unpaid and household work, ignores depreciation of natural and produced capital, treats defensive spending (disaster clean-up, commuting, treating pollution-related illness) as gain, and says nothing about distribution or sustainability. These gaps motivate the beyond-GDP agenda and alternatives such as the GPI, genuine savings, and wellbeing dashboards.

How it is used

GDP anchors fiscal and monetary policy, international comparisons, debt ratios, and growth targets; in sustainability analysis it serves as the denominator of intensity metrics and the reference point for decoupling.

Why it matters

What a society maximises it measures; GDP's dominance shapes what governments pursue, which is why redefining progress starts here.