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Differences between GDP and GPI

Differences between GDP and GPI

A growing number of economists are advocating for the use of the gross domestic product (GDP) to be supplemented or even replaced by gross national happiness (GNH) or some other measure of societal well-being. While both GDP and GNH purport to measure economic prosperity, there are some important differences between the two metrics. In this blog post, we will explore some of those differences.

What is GDP?

GDP, or Gross Domestic Product, is a measure of the size and health of an economy. It represents the total value of all goods and services produced in a country over a period of time – typically a year. GDP is used to gauge the well-being of a nation and its citizens, and to compare living standards between countries. GDP growth is also used as a metric for economic progress. A country’s GDP can be affected by many factors, including population growth, inflation, interest rates, exchange rates, and political stability.

What is GPI?

GPI is an acronym for the Gross Progress Index, a metric used to measure the economic standing of a country. The GPI takes into account a number of factors, including GDP, inflation, unemployment, and trade balance. By looking at these factors, the GPI provides a more holistic view of a country’s economy than the GDP alone. GPI can also be used to compare the economic standing of different countries. For example, a country with a GPI of 100 is considered to have average economic progress, while a country with a GPI of 200 is considered to have above-average economic progress.

Differences between GDP and GPI

GDP (Gross Domestic Product) and GPI (Gross National Income) are two measures of a country’s economic output. GDP is the total value of all goods and services produced within a country’s borders, while GNI includes income from foreign investments. GDP is often used as a broad indicator of a country’s economic health, but it has some limitations.

For instance, GDP does not take into account the distribution of income or the environmental impacts of economic activity. GPI is a more holistic measure of a country’s well-being, but it is more difficult to calculate. GDP is still the most commonly used metric for comparing economies, but it is important to understand the differences between GDP and GPI.


The Gross Domestic Product (GDP) is the most common indicator of a country’s economic health, but there are many who believe it does not paint an accurate picture. One alternative is the Genuine Progress Indicator (GPI), which takes into account environmental and social factors in addition to economic ones. This article has explored the differences between GDP and GPI and why some experts believe GPI is a more accurate measure of a country’s prosperity.

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