No. Growth in gross domestic product measures an increase in economic output, not an improvement in every person's life. Even inflation-adjusted growth does not establish that everyone benefits.
The IMF explains that GDP does not describe how output is distributed among residents and leaves out important aspects of welfare, including leisure and environmental costs. The OECD likewise says GDP cannot establish whether life overall is improving or for whom.
GDP remains useful for tracking economic activity. Assessing well-being requires additional evidence about people's material circumstances, health, safety and other living conditions. A growing economy and unequal improvements in people's lives can coexist.
Economic growth and improvements in well-being are related but distinct. GDP alone cannot show how benefits are shared.
International Monetary Fund
The IMF distinguishes GDP from overall well-being and identifies distribution, leisure and environmental costs among its limitations.
Based on: International Monetary Fund
OECD
The OECD explains that GDP cannot establish whether life as a whole is improving or who benefits. Its well-being framework examines multiple outcomes and inequalities.
Based on: OECD
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No. It rises by 1 percentage point. Relative to the original 4% rate, that is a 25% increase.
Yes. Profit and available cash measure different things. Sales may count toward profit before customers pay, while bills still come due.
No. Lower positive annual inflation means overall prices are rising more slowly than a year earlier. It does not mean the overall price level has fallen.