What is the difference between GDP and GPI?

GDP and GPI are both economic tools which are used in determining the economic progress or condition of a country. Both GDP and GPI are very useful because through them you can determine the standard of living of the citizen of a particular country. GDP is the acronym for Gross Domestic Product. GDP simply means the totality of all the goods produced by a country and the various services it renders. The problem with the use of GDP is that it doesn't give an accurate measure of a country total goods and rendered services.

That's why GDP can be calculated in a lot of ways. It can be calculated by determining the total income of various producers in a country. Or determining the total expenses of the buyers and consumers. GPI, on the other hand, is the acronym for Genuine Progress Indicator. GPI is used to determine the welfare progress of a particular country, and most times, it is through the use of GDP. The standard of living of the citizens can be determined through the use of GPI

When analyzing a country’s economy, economists will look at its GDP or gross domestic product. The GPI is the Genuine Progress Indicator. Both of them have to do with the measurement of the ranking of a country’s economyl. Even though these seem similar, there are some differences between the two indicators. One is that if you are calculating the Gross domestic product, then you can calculate the genuine progress indicator.

When comparing the two, quantitative and qualitative play a part because the gross domestic product is considered to be quantitative, and genuine progress indicator is considered to be qualitative in studies. Lastly, GDP refers to the whole number of goods and services that a country produces, whereas the GPI is everything with the GDP, but it also includes welfare.