GDP - AN INDICATOR OF PROSPERITY OR A MISLEADING ONE?

• Main Author: CRIVEANU MARIA MAGDALENA
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2017-04-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: growth rate; GDP; debt; inequalities.
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2017-02/15_Criveanu.pdf

The paper presents a comparative analysis of Romania’s GDP and other European countries’ GDP, as a response to social media debate on the fact that Romania seems to have the highest economic growth. The purpose of the research is to signal a series of inconsistencies between the GDP indicator and the economic reality of a country. In this sense, we propose an assessment of the level of GDP in Romania and in other countries, as well as the growth rate of GDP. We also want to highlight other representative aspects of a country's assessment such as the debt ratio or the uneven income distribution, which are more representative than the GDP indicator. In this context, we want to emphasize that an isolated analyzer can distort the real image. At the same time, the issue is alarming if we recall some other negative events, such as the 2008-2009 period, when Romanian society, being encouraged by a fictitious explosion of GDP, has developed an unsustainable, debt-based economy.