GDP: A business perspective

Gross Domestic Product (GDP) and the corresponding national accounting framework, are frequently used by businesses, both directly and indirectly when making short and long-term business decisions. This document aims to investigate how businesses, adopting either a classic or stakeholder approach to business, measure the economy in which they operate, with particular focus on the value and influence of GDP. Using a business perspective, the suitability of GDP as a window into the macro-economy is explored, from how GDP is calculated, how businesses and individuals regard GDP, and how GDP is used within the business environment. As GDP is a well trusted economic indicator, certain shortcomings of GDP as a sustainable measure of the economy, are examined in detail, including wealth, the environment, and well-being.

Autorentext

Mr Benjamin Shaw, BE, DipML (French), MBA, MIEAust Director of Management Consultancy, Talbot Shaw, Melbourne. Specialist in strategic problem solving, business ethics, and economic indicators.