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Experts Demand GDP Overhaul to Reflect Digital Economy's True Value
26 Aug
Summary
- GDP measurements inadequately capture service-based economies
- Significant underestimation of economic growth in digital, healthcare, education
- Overhauling GDP methodology essential for accurate economic assessment
As of August 26th, 2025, experts have been calling for a major overhaul of GDP (Gross Domestic Product) measurement methodologies, which they claim are inadequate for capturing the true value of service-based economies like the US and India.
The current GDP framework, primarily designed to track the production of physical goods, has struggled to accurately reflect the growing importance of the service sector, which now dominates many advanced economies. Experts argue that this has led to a significant underestimation of actual economic growth, particularly in areas such as digital services, healthcare, education, and financial services.
According to the experts, the failure to properly account for the value of these service-oriented industries has resulted in an incomplete and distorted understanding of economic performance. They emphasize that updating GDP measurement techniques is crucial for policymakers and businesses to gain a more accurate and comprehensive picture of the economic landscape.
