GDP Growth Does Not Necessarily Improve Living Standards, Economist Warns
By KEMI KASUMU
According to the economist, although GDP remains an important measure of economic activity, its growth must be considered alongside population growth and other indicators of citizens’ welfare.
Chief Economist and Partner at SPM Professionals, Dr. Paul Alaje, has cautioned that growth in Nigeria’s Gross Domestic Product (GDP) does not automatically translate into improved living standards for citizens.
Alaje made the observation while speaking on the Nigerian Television Authority’s (NTA) programme, Good Morning Nigeria, where he stressed the need for policymakers to look beyond headline GDP figures when assessing the country’s economic performance.
According to the economist, although GDP remains an important measure of economic activity, its growth must be considered alongside population growth and other indicators of citizens’ welfare.
He noted that Nigeria’s population is growing at a faster rate than the economy, raising questions about whether the country is recording meaningful economic growth when measured on a per-capita basis.
Alaje’s comments highlight the importance of examining GDP per capita and broader living-standard indicators, rather than relying solely on aggregate GDP growth to determine whether economic expansion is translating into better conditions for Nigerians.
The economist’s remarks come amid ongoing debates over Nigeria’s economic growth, rising cost of living and the extent to which official economic figures reflect the everyday experiences of citizens.
