Question

Why GDP is considered as the most important indicator of a country’s people well-being?

Answer 1

Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period.

GDP is perhaps the most closely-watched and important economic indicator for both economists and investors alike because it is a representation of the total dollar value of all goods and services produced by an economy over a specific time period. GDP is an indicator of a society's standard of living, but it is only a rough indicator because it does not directly account for leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology, Is GDP an accurate measure of a country's well-being? No, it is not, The cost of resource depletion is not measured in GDP. but it does measure our ability to obtain many of the inputs into a worthwhile life. GDP is not, however, a perfect measure of well-being.Also GDP omits the value of goods and services produced at home.Annual GDP figures are often considered the best indicators for the size of the economy but not an accurate measure for welfare.