GDP is the value of goods and services produce in a country during the time period of year. Measuring of economy on GDP standards consist some drawbacks.
Double Counting Problem :- Including the price of intermediate goods individually and with final product.
Self doing activities :- Unrecorded economy in personal activities like the duties performed by oneself, housewives etc are not included in the GDP.
Illegal Economy:- The economy which can be shown incorrectly due to corruption,bribery and drugs business.
Statistical Errors:- People measuring the economy not performing their duties with honesty or the standard they are using are not current to measure the accurate value of GDP.
Pollution Factor:- Pollution factor can’t be included in GDP.
Facilities and living standards:- facilities and living standards improvement can’t be indicated by GDP, to show whether the people of the country are worst off or well off.
Quality Improvement:- As the time passes quality improve with speed as compared to the price, GDP can only measure the price as value but not quality.
