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How we track our economy influences everything from government spending and taxes to home lending and business investment. The Conversation series The Way We Measure takes a close look at economic indicators to better understand what's going on. Ever since 1944, Gross Domestic Product (GDP) has been a primary measure of economic growth. It's in the news regularly and, even though few can define what it means, there is general acceptance that when GDP is growing, things are good. There are problems with this simplistic formulation.

Christopher Pyne has overstated how well Australia is performing on jobs and growth compared to other major economies. IMF estimates for 2016 on GDP growth had put Australia ahead of the G7 countries. But the latest available data - which are actual figures as of the third quarter of 2016, not estimates - show that Australia's cumulative growth in 2016 so far is at the level of the G7 and not higher. So Australia is performing in line with the G7 and slightly worse than the OECD average.

How do we measure illegal activity? How do we estimate the size of the 'black economy'? Some nice visualisations in this report. The Australian government has announced a taskforce to "crack down on the black economy", with a panel reportedly to consider measures such as removing the $100 note from circulation and limiting cash transactions above a certain limit. One estimate of the underground economy from 1999, which only considered cash transactions and excluded illegal activities, put the size of the underground economy at around 15% of gross domestic product. However, a more recent estimate by the Australian Bureau of Statistics (ABS) in 2013, which encompassed proceeds from illegal activities as well as other areas, estimated the size to be far smaller, at only 2.1% of GDP.