Redefining Prosperity: Measuring Economies Beyond GDP

https://www.cnbc.com/amp/2022/12/26/well-being-these-countries-are-looking-beyond-gdp-and-economic-growth.html

Several countries, notably Finland, Iceland, Scotland, Wales, and New Zealand, are challenging the efficacy of Gross Domestic Product (GDP) as an accurate metric for economic prosperity. These nations, predominantly led by women and part of the Wellbeing Economy Governments partnership, are advocating for a shift toward a well-being economy by 2040. They aim to redirect economic policies away from solely prioritizing GDP growth and towards enhancing the overall quality of life while preserving the environment. Scotland's First Minister Nicola Sturgeon emphasized the urgency for this transformation amid various crises, such as climate change, biodiversity loss, and affordability challenges. Recent initiatives like New Zealand's Wellbeing Report and the European Union's recognition of the need for a well-being economy highlight the global momentum behind this movement. Critics argue that GDP fails to account for crucial aspects like unpaid work and environmental impact, emphasizing the need for a holistic approach. Amidst concerns about global crises and environmental sustainability, voices are growing in favor of embracing a well-being economy and transitioning away from the traditional emphasis on constant economic growth measured by GDP.