Question

IS the GDP the best way to evaluate the prosperity of a country? What advantages and disadvantages are there when using numbers only?

Answer 1

GDP which is also called the gross domestic product is the final production value of goods and services that is produced within the domestic boundary of a country in a financial year

It is generally measured on quarterly or yearly basis

The change in real GDP is expressed as real GDP growth rate or called as economic growth

Many countries consider it as for measuring their overall growth with respect to previous year

But many economists not considered it has a perfect measure because it just give the number value and not the true insight of any economy

For example it do not considers so many data like-

Carbon footprint index

Happiness index

Gini coefficient index of income inequality etc

It misses all these data due to which the accurate value of a country do not comes out

For example only country Bhutan in the world measures the happiness index of the people and include this in the overall GDP calculation