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What does GDP mean?

A publication forming part of Arup’s 7see project to model national economies and test the feasibility under physical and economic constraints of future scenarios. The metrics for the socio-economic and energy aspects of the model are introduced and GDP is explained because it is derived from the same metrics used in the model.

Schematic of how the built environment for each industry is regarded as using a range inputs in order to produce its own output, services in this case. The capital input needed to maintain and grow the built environment is represented by “FCF”. Dashed lines represent how the 7see model determines the rates of flows.

The measure GDP (gross domestic product) receives a mixed press. Politicians, the business community and economic commentators hang on each quarterly release. With emotive descriptors, everyone yearns to get out of a depression and into growth. Contrast this with GDP’s critics who vilify its focus on monetised transactions, saying it

ignores unpaid work, activities in the home and nature’s contributions. Worse still, an increase in GDP extracts more of the earth’s generous bounty and pollution clean-up counts as production.

This publication takes neither position but simply sets out to explain what GDP means. Behind the single metric is a firmly established methodology of data collection. Whether you are interested in economics or not, the definitions in this methodology provide a useful language to access a rich data resource and discuss its implications. GDP components are complemented with energy, jobs, travel and balance of payments.

Have You Wondered What GDP Means? is a door to understanding data so they can be used the right way, appreciating both their qualities and limitations. It is only from such a position that we can progress with the big questions, such as cutting carbon dioxide emissions while maintaining economic viability.

Download Have You Wondered What GDP Means?

ISBN 9780992950101 / ISBN 9780956212184

Category: Bank

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