What indicators are used to measure economic performance besides GDP?

Besides GDP, economic performance can be measured using indicators such as unemployment rate, inflation rate, interest rates, and balance of trade.

Gross Domestic Product (GDP) is often used as a primary indicator of a country's economic health. However, it is not the only measure. Other indicators can provide a more comprehensive picture of a country's economic performance.

The unemployment rate is one such indicator. It measures the percentage of the total labour force that is jobless and actively seeking employment. High unemployment rates can indicate an underperforming economy, as it suggests that a significant portion of the population is not contributing to economic output. Conversely, low unemployment rates can suggest a healthy economy, but they can also indicate potential labour shortages or inflationary pressures.

Inflation rate is another key indicator. It measures the rate at which the general level of prices for goods and services is rising. Moderate inflation is often seen as a sign of a healthy economy, as it suggests that demand for goods and services is strong. However, high inflation can erode purchasing power and create uncertainty, while deflation (negative inflation) can lead to decreased economic activity.

Interest rates, set by a country's central bank, are another important measure. They influence the cost of borrowing and the return on savings, affecting consumer spending and investment. Low interest rates can stimulate economic activity by making borrowing cheaper, but they can also lead to inflation and financial instability. High interest rates can help control inflation, but they can also dampen economic activity by making borrowing more expensive.

The balance of trade, which is the difference between a country's exports and imports, is another key indicator. A trade surplus (more exports than imports) can contribute to GDP and signal a competitive economy, but it can also lead to trade tensions. A trade deficit (more imports than exports) can indicate a strong domestic demand and access to quality foreign goods, but it can also lead to debt and economic vulnerability.

In addition to these, other indicators such as the level of government debt, income distribution, and measures of environmental sustainability can also be used to assess economic performance. These indicators can provide a more nuanced understanding of a country's economic health, beyond what GDP alone can tell us.