What does the genuine progress indicator (GPI) account for?

The genuine progress indicator (GPI) is designed to provide a more comprehensive measure of economic performance that goes beyond traditional metrics like gross domestic product (GDP). One of its critical components is accounting for the depreciation of community capital.

This aspect includes considering the loss of natural resources, environmental degradation, and the depletion of community assets such as social networks and community health. GPI aims to reflect the true wellbeing and sustainability of a community by factoring in social and environmental costs, thus giving a clearer picture of progress or decline that GDP alone cannot provide. It's meant to address how economic activity might detract from overall quality of life, demonstrating a more nuanced understanding of growth that includes both the positives and the negatives of economic activities.