AAP Finance

Mexico eyes ‘happiness’ alternative to GDP

By AAP Newswire

Mexico will create a happiness index as an alternative to the gross domestic product (GDP), which is not a good indicator of well-being, President Andres Manuel Lopez Obrador says.

Economists, mathematicians, sociologists, psychologists and other experts will develop the index, which will not only measure economic growth but also levels of inequality and "the happiness of the people," the president said.

"Technocrats will not like it," but "it may be good for us" and "something new," he explained at his daily press conference on Thursday.

Lopez Obrador made the announcement at a time when Mexico's already recessive economy has been hard hit by COVID-19.

The International Monetary Fund expects the economy to shrink by 6.6 per cent this year, after a contraction of 0.1 per cent in 2019.

Latin America's second-largest economy, with nearly 130 million residents, suffers from high levels of inequality. More than 50 million Mexicans are classified as poor.