What are strengths and weaknesses of GDP?

Answer 1

GDP, or Gross Domestic Product, is a key indicator of economic performance, reflecting the total value of goods and services produced in a country. Its strengths include providing a clear quantitative measure for economic growth and facilitating international comparisons. However, GDP has weaknesses, such as failing to account for income inequality, environmental degradation, and non-market transactions, which can give a skewed picture of overall societal well-being. Additionally, it does not measure quality of life or happiness, limiting its usefulness as a holistic economic indicator.