GDP, the economic world's favorite growth indicator, does not take into account the effects of climate change. To better truly and physically appreciate the economic situation, the creator of the carbon footprint and polytechnic engineer Jean-Marc Jancovici suggests turning to concrete activity indicators, such as square meters built during the year or tonnes loaded in trucks. . According to this data, “ Europe has entered a form of recession ».
Does GDP reflect the physical reality of the economy?
No, it even reflects it more and more poorly. Calculating GDP requires an “inflation correction” which is now becoming a real headache. For example, if you have one pair of pants in a given year and the following year another pair of pants that are neither the same shape nor the same material, but are more expensive, is that an increase in quality – in which case the price increase enters GDP – or is it a variation in price for identical product – in which case it is inflation and does not enter GDP ? And we have to ask ourselves the question for the billion products available to the end consumer ! In addition, the GDP is now composed of 70 % of services: but if a lawyer's fees increase, is it inflation, or an increase…
