limitations of GDP

GDP, or Gross Domestic Product, measures the total value of goods and services produced in a country but has several limitations. It doesn’t account for income inequality, so it might give a false impression of prosperity. It ignores non-market activities like volunteer work and household labor, which contribute to well-being. Environmental degradation isn't considered, meaning economic growth can occur at the expense of natural resources. Additionally, GDP fails to measure quality of life or happiness, making it a limited indicator of a nation’s overall health and progress. Thus, it should not be the sole measure of a country's success.