Diane Coyle

Diane Coyle's picture

Diane Coyle
About the author:

Managing Director of Enlightenment Economics

Is GDP Still The Best Indicator Of Economic Progress?

Date: 27 February 2014

Criticism of Gross Domestic Product (GDP) as an indicator of the health of the economy has grown in recent years, in part because of a new focus on measures of subjective well-being or ‘happiness’. This column argues that the debate needs to distinguish between the different purposes of measurement: economic activity, social welfare, and sustainability are distinct concepts and cannot be captured by a single indicator. There are good arguments for paying less attention to GDP and more to indicators of welfare and sustainability, but it would be a mistake to adjust or replace GDP.

Read more