GDP Growth Isn’t the Same Thing as Economic Growth
To gain insight into the state of an economy, most financial experts and commentators rely on a statistic called the Gross Domestic Product (GDP).
The GDP framework looks at the value of final goods and services produced during a particular time interval, usually a quarter or a year.
This statistic is constructed in accordance with the view that what drives an economy is not the production of wealth but rather its consumption. What matters here is the demand for final goods and services. Since consumer outlays are the largest part of the overall demand, it is