Richard Heys, Himanshi Bhardwaj & Cliodhna Taylor in Nature:
For decades, economists have known that using gross domestic product (GDP) alone to guide policy is problematic. The metric is mainly a measure of market production, albeit one with strong marketing and branding, and misses key elements of what makes a good life. Nevertheless, failure to agree on alternatives has held back the debate over what should replace it.
This year will be pivotal for changing how policymakers use data to guide decision-making. In May 2025, the United Nations secretary-general António Guterres commissioned a High-Level Expert Group to consider alternatives to GDP. The group’s final report is expected by the end of April and will stimulate great debate about how countries will use its proposed alternatives.
While the world awaits those recommendations, it is worth reflecting on three questions: why is GDP a poor metric, do the data exist to deliver improvements and how could better metrics provoke better policies?
Here, we offer insights from UK efforts to build on GDP to measure economic welfare using readily available national statistics and standard economic tools.
More here.
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