Measuring GDP

The following table contains some data from the Australian economy that was sourced from the Australian Bureau of Statistics.

Table 1: Growth Rates of Selected Variables

Variable 1970-1990 1990-2019

nominal GDP 12.7 5.6

real GDP 3.1 3.4

Consider the data contained in the table, and the statement in italics below.

Nominal GDP growth has declined in recent decades (post-1990) when compared to growth in earlier periods (pre-1990). This indicates that growth in market activity has declined in recent decades. This is concerning because, although market activity is not a measure of welfare, it is correlated with welfare. Do you agree or disagree with this statement? Explain your reasoning.