The head of South Korea's central bank called Wednesday for efforts to better reflect the rapidly changing economic reality in the gross domestic product.
GDP -- the broadest measure of an economy's performance -- is the total value of goods and services produced within the economy in a given period. It has been used as one of the major indicators in economic policy-making.
Still, some critics say GDP does not properly reflect new activities such as digital or economic sharing. They also say GDP has limitations in showing the degradation of the environment, the distribution of income and wealth, and changes in the quality of life.
"We should make efforts to improve and supplement GDP to faithfully reflect the rapidly changing economic reality," Bank of Korea Gov. Lee Ju-yeol said in a conference, in an apparent reference to the digital economy and industries related with the Fourth Industrial Revolution.
The conference was co-hosted by BOK and the International Association for Research in Income and Wealth. The Ottawa-based organization has been at the forefront of national accounts-related research on income, wealth, productivity and well-being.
Lee said the BOK is preparing a work plan for possible improvement in the current GDP's measure to reflect the digital economy. (Yonhap)