GDP Upgrade: How Can One Measure the Quality of Economic Growth?
Published: December 2020
Sustainable per capita economic growth is possible if the quality of goods and services produced by the economy increases. US GDP growth may be underestimated by 0.4–0.6% per year because of unmeasured (undetected) improvement in the quality of goods and services. Calculation and publication of new statistical indicators such as IQI for separate product groups and the impact of quality on GDP for the whole economy will improve our understanding of the contribution of quality to economic growth.