How Does The Gdp (Gross Domestic Product) Differ From The Gpi (Genuine Progress Indicator)?

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How Does The Gdp (Gross Domestic Product) Differ From The Gpi (Genuine Progress Indicator)?

GPI calculates the total value of goods and services, while the GDP focuses on just the goods produced. The GDP only makes calculations for a single calendar year, while the GPI looks at historical trends and projects into the future. The GPI takes into account externalities (both good and bad) and other nonmarket values, while the GDP does not. GDP does not include items bought and sold over the Internet. Critics say that this makes the GDP out of date and came up with the GPI to add these purchases into the calculations.
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The GPI takes into account externalities (both good and bad) and other nonmarket values, while the GDP does not. The GDP just calculates the monetary value of the final goods and services produced in a country in a year. Environmentally and socially degrading activities can add to the GDP in the short run, but are not sustainable in the long term. The GPI adds in these nonmarket values.
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