commodity sales are in good condition, enterprises begin to make a lot of profits, dividends and bonuses increase correspondingly, and stock prices rise to the highest point

1. Since GDP uses market prices to evaluate goods and services, it does not include the value of almost all activities outside the market. In particular, GDP misses the value of goods and services produced at home.

2. GDP does not include environmental quality. Imagine that the government has abolished all environmental controls, so enterprises can produce goods and services without considering the pollution they cause. In this case, GDP will increase, but welfare is likely to decline. The deterioration of air and water quality is greater than the welfare benefits brought by more production.

3. GDP does not involve income and distribution. Per capita GDP tells us the average situation of everyone, but behind the average amount is the huge difference in personal income. Thus, in most cases, but not all cases, GDP is a good indicator to measure economic welfare.

4. The concept of GDP is derived from the principle that exchange generates wealth. The basic conditions of this principle are: first, the exchange must be voluntary, second, the exchange must not hinder the third party, and third, the exchange must really take place between two clear property rights subjects. Assuming that these three conditions are not met, the accuracy of the obtained GDP value may be greatly reduced, or the GDP data will be flawed.