Global economic and social systems are changing rapidly as a result of technology. The metrics that we use to measure national performance were primarily designed for the industrial economies of the early-mid 20th century. Gross domestic product (GDP), for example, is a measure of the value of final goods and services produced in a place over a time period. This may not be the best measurement in a economic system that is becoming increasingly digital and global, and it certainly does not holistically measure national prosperity.
Performance measurement is important. Investors use GDP to assess risk and opportunity, which drives important capital allocation decisions. Policymakers use GDP to assess national performance, drive important policy and regulatory decisions. These decisions have real impacts on people’s careers, communities, and lives. Better data and metrics that more closely resemble reality are needed to facilitate better decisions and outcomes.
Do the commonly-used metrics adequately reflect growth and national performance in the modern economy? This dashboard allows you to compare GDP and several alternative measures of socioeconomic development to see how they correlate and diverge in different countries.
Last updated: Monday, 29 October 2018