GGDP

GGDP is an acronym used in economics and policy discussions to denote two distinct concepts: Global Gross Domestic Product and Green Gross Domestic Product. The term does not have a single universally accepted definition, and its meaning depends on the context in which it is used.

Global Gross Domestic Product, when referred to as GGDP, describes a measure of the total market value of all final goods and services produced within the global economy during a given period. It is typically estimated by aggregating national accounts data, using either nominal values or purchasing power parity (PPP) adjustments. Global GDP is employed for broad comparisons across regions and over time, but it faces challenges such as data compatibility, exchange-rate distortions, coverage of informal activity, and the treatment of multinational production.

Green Gross Domestic Product is an alternative metric designed to reflect environmental costs and the depletion of natural capital within economic activity. Methods to construct Green GDP include subtracting environmental depreciation from conventional GDP or adding the value of ecosystem services to GDP. Implementations vary, and crucial issues include how to value non-market resources, which environmental damages to include, and the chosen accounting framework. Green GDP remains controversial and is not consistently adopted in official statistics in most countries.

In practice, GGDP discussions emphasize sustainable development and the limitations of traditional GDP as a sole indicator of welfare. Proponents argue that incorporating environmental and resource considerations can improve policy targeting, while critics note methodological uncertainty and the risk of misinterpretation or politicization.

See also GDP, green accounting, genuine progress indicator, sustainable development.