Why The Gross Domestic Product Statistic is Obsolete

(Pages 825-827)

Jorge Sá1,* and Ana Lúcia Luís2
1Senior Research Fellow at Peter Drucker and Masatoshi Ito Graduate School of Management, and Professor at ISG Business School.
2Professor at ISG Business School, Address: Av. Mal. Craveiro Lopes 2A, 1700-284 Lisboa.
DOI: https://doi.org/10.55365/1923.x2023.21.89


Globalisation has many economic implications. In particular, the fragmentation of production across countries presents new challenges for economic indicators. In the past, as a way of comparing living standards, GDP was the commonly used measure. However, today, due to globalisation, fragmentation of production, increased financial flows and movement of people, it has become an obsolete measure, national income being incomparably better. Although national income is the statistic generally used by the World Bank, this is an exception to most other world institutions and economists who still use GDP. For this article, the cases of Luxembourg, Ireland, Greece and Portugal were studied to analyse the differences found using the different economic statistical measures.


Income and GDP measurement; Wealth measurement; GDP limitations; Ireland and Luxembourg income; Portuguese crisis.


E01, E66, I30.

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Jorge Sá and Ana Lúcia Luís. Why The Gross Domestic Product Statistic is Obsolete. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a89/

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