Measuring Economic Success

How might you go about deciding whether a country is enjoying economic success? This video looks at some of the indicators that might be used.

Inevitably, the indicators we choose to measure economic success and the importance (or weighting) attached to each involves making a value judgement.

Success can either be absolute – perhaps comparing current macroeconomic indicators with previous year.

Or it can be relative, for example comparing the UK’s economic achievements with those of other countries including our closest trading partners and competitors.

These measures might include the following:

• Rate of unemployment
• Rate of economic growth (GDP)
• Annual % increase in consumer prices
• Trade performance of countries in the global economy
• National income per head of population
• Government finances (including debt)
• Social indicators including economic well-being and income/wealth inequality