UNCTAD launches new index for countries to better measure economic potential

The United Nations Conference on Trade and Development (UNCTAD) launched a new generation Productive Capacities Index (PCI) to help countries make more accurate diagnostics and measurements of their economic performance.
In turn, this can shape more effective policies and their implementation. The PCI measures countries’ abilities to produce goods and deliver services, which are critical for international trade and global production value chains.
The PCI is available through a dedicated online portal with publications, manuals, resources and tools. It maps the productive capacities of 194 economies and provides a better measure of development than other traditional benchmarks such as gross domestic product (GDP). It’s multidimensional and measures economic inputs and potential as opposed to outputs.
For governments, the PCI is a powerful and practical tool to track progress over time and forge informed policies to plug development gaps. It can help countries respond to a call by UN Secretary-General António Guterres to move beyond GDP and measure the things that really matter to people and their communities.