GDP is an important indicator that reflects a country's economic development, but when we talk about GDP, we must not only look at its numbers, but also its structure, because the GDP algorithm of each country is different. Only by fully understanding GDP indicators can we fully grasp the country's economic development. In the program " This Is China " aired on September 19, Zhang Weiwei, dean of the China Institute of Fudan University, and assistant researcher Luo Feng gave a speech and discussion on GDP.
Luo Feng mentioned that as an indicator of economic accounting , GDP actually has some natural limitations.
First of all, although GDP can well summarize the overall level of a country's economic development, it is difficult to measure an achievement in national happiness and social progress, especially, it has no way to discuss whether economic development can benefit the people and other social issues.
Second, it is an indicator dedicated to cross-border comparison. GDP can well measure those materials that are convenient for cross-border flow, but there are great shortcomings in some localized products, especially in the daily life of residents.
Third, GDP does not have a good way to estimate the abuse of natural resources by economic growth and the damage caused to the natural environment.
Therefore, different countries and organizations have proposed many corresponding correction methods, or some alternative indicators. For example, the United Nations Human Development Index (HDI), this indicator involves the life expectancy, education level, quality of life of the people, etc., and takes into account the per capita GDP. Professor Zhang mentioned a purchasing power parity (PPP) in the program, which is mainly an indicator of trying to overcome the differences in price levels in different countries. According to the GDP adjusted after purchasing power parity, it is actually more practical in evaluating the purchasing power of localized services and products in different countries.
(Material source: "This is China" program team Editor: Liu Qingyang)
