Gross Domestic Product as a Macroeconomic Measure Of Sustainability

Migration, demographic changes, globalization and digitization continue to have a significant impact on the economy and society. In addition, environmental pollution, excessive urbanization, ecosystem degradation and severe climate change create risks to financial systems and the economy that require global coordination and harmonized long-term strategies. Sustainable development is socio-economic development that emphasizes environmental protection and can be analyzed on a macro- and micro-scale. There is no consensus among researchers regarding sustainable development indicators. The lack of an acceptable and quantifiable measure of sustainable development is a huge obstacle to taking coordinated international action to promote sustainable economic growth. An area where much less research has been conducted is the potential impact that sustainable practices can have on macroeconomic indicators. Such research is of particular interest to policymakers and central banks, as it is suggested that the promotion and adoption of sustainable practices can support macroeconomic performance. Gross Domestic Product (GDP), which has been used as the sole measure of national well-being, is confronted with the reality of limited natural resources. The shortcomings of GDP as an index to measure socio-economic progress are re-emerging in public debate after years of good-natured neglect. What could be alternative macroeconomic indicators of sustainability?