Rethinking Cyprus’ economic performance metrics

By Ioannis Tirkides

We use summary indicators to conveniently measure the performance and health of the economy. But while these can be useful in some respects, they have their drawbacks and their interpretation and meaning may not be so straightforward.

The usual way to measure an economy’s performance, and to compare it over time and with its peers, is to look at gross domestic product, also in per capita terms and in real inflation-adjusted terms.

But a sheer...