Grossly distorted GDP statistics need an overhaul

Gross domestic product (GDP) is our main gauge of economic output. It has always been dodgy, but in the digital age we may need to dispense with it entirely, says Max King.

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The finance sector skewed pre-crisis GDP figures
(Image credit: MarioGuti)

There are, according to Benjamin Disraeli, three kinds of lies: "lies, damned lies and statistics". Yet popular opinion treats the release of every item of economic data, often rushed out prematurely and prone to multiple subsequent revisions, with a reverence that no serious economist would condone. Economic statistics are then routinely weaponised for political ends, a task made easier by the frequent contradictions between different sets of data.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.