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1. The IDI ranks countries' economic performance in three pillars: growth and development,
inclusion, and intergenerational equity and sustainability while GDP is measured with the
help of personal consumption expenditure(C), gross private domestic investment,
government consumption expenditure and investment and net export. The IDI captures a
more integrated picture of the relative state of economic development than GDP alone.
2. An increase in growth and development, inclusion, and intergenerational equity and
sustainability are the factors behind the improvement in IDI index.
3. IDI might be a better gauge of economic performance in the sense that it takes into account
growth, as measured using GDP per capita, employment, and productivity, it also
incorporates several other metrics, including gauges of poverty, life expectancy, public
debt, median income, wealth inequality and carbon intensity. The index also considers
investments in human capital, the depletion of natural resources, and damage caused by
pollution. Hence, this broader index of economic progress and wellbeing shows how the
traditional measure of growth often falls short.
4. Factors such as GDP per capita, labour productivity,employment rate, poverty rate,
wealth inequality, dependency ratio and so on are some of the factors that IDI considers
that GDP fails to consider.
5. Employment rate, adjusted net savings rate, public debt rate and carbon intensity kg per
$ of GDP are the strengths while GDP per capita, labour productivity per dollars are the
weaknesses of Nepal.
Question 2
1)
Country/Province GDP GDP per capita GDP growth rate(%)