The Malta Business Weekly spoke to Malta Employers Association Director-General Joseph Farrugia about the limitations of GDP ahead of the MEA National Conference discussing the theme
Why is the MEA turning its attention to GDP right now?
Gross Domestic Product is not enough to measure economic sustainability as it leaves out essential considerations of wellbeing. The MEA has been talking about the need to broaden our economic views for a long time now, but the pandemic has put the topic in a completely new perspective and made the discussion urgent.
What is the problem with GDP?
GDP takes a picture of market factors that cover consumption, investment, exports, and public spending. But these are not the only contributors to economic performance. The voluntary sector, for example, or unpaid family workers do not fit into a GDP chart, and yet their functions have an immense economic impact. A GDP-only model neglects social and environmental significance layers that make economic growth possible in the first place.
For the full interview, head over to The Malta Business Weekly