Move over GDP – time for a new measure of economic growth
- GDP is no longer an accurate measure of growth.
- The World Economic Forum has created a holistic scorecard to guide policy-makers and government through the post-pandemic recovery.
- Prosperity, the planet, people and the role of institutions need to be balanced.
- And trade-offs will be necessary as these metrics are intricately linked.
Why, in the 21st century, are we still measuring our economic growth with the Gross Domestic Product (GDP) – a metric created in the early 20th century?
And how can we define a more comprehensive, multidimensional metric that adequately reflects the complexities of the world we live in and that can guide our post-pandemic recovery? A metric that looks beyond a nation’s income and considers welfare, the environment and people, too?
The World Economic Forum has attempted just that with…