What does GPI mean in ECONOMICS

The Genuine Progress Indicator (GPI) is an alternative economic indicator used to measure the overall sustainability, progress and well-being of a community or nation. It looks at indicators such as economic indicators, environmental costs and benefits and social measures in addition to traditional economic factors like GDP.

GPI takes into account a wide range of factors, including ecological integrity, income distribution, health, infrastructure investment, education levels and personal leisure time. In addition to traditional economic indicators like GDP.

Gross Domestic Product (GDP) is a widely used measure of national wealth that ignores environmental damage or income inequality that can result from industrial activity while Genuine Progress Indicator (GPI) takes into consideration broader issues such as the cost of pollution or inequality in income when measuring national wealth.

GPI measures both the savings generated by production activities as well as the costs associated with them — both external costs such as those resulting from pollution or inadequate safety standards, as well as opportunity costs associated with depleted resources or eroding quality of life through depletion of leisure time due to long working hours.

GPI provides an alternative way to look at overall progress beyond the limited scope offered by GDP alone; it is more comprehensive in its evaluation of sustainability and human wellbeing than conventional economic measures such as GDP. As it captures negative externalities caused by production activities often not picked up in other measurements such as joblessness, resource depletion, environmental degradation etc., it gives us a more accurate assessment on how our society is faring economically than other standard metrics tend to do.