When measuring inflation we should take account of the prices of online stores such as Amazon or eBay. Gross domestic product is one of the pillars of macroeconomic statistics. It is still the most important measure of economic activity and wellbeing. However, the growth of the digital economy, whose output is usually immaterial, limits the role of GDP in measuring economic activity and wellbeing.
Digitalization has dramatically changed how businesses are conducted and goods and services purchased. This brings us to the productivity paradox: productivity in industrialized countries is growing less than in past decades while economies are experiencing rapid digitalization.