1. The exclusion of non-market transactions.
2. The failure to account for or represent the degree of income inequality in society.
3.The failure to indicate whether the nation’s growth rate is sustainable
4.GDP does not include transactions that take place in the 'stock market
Limitations of GNP:
1.Exchange rate
2. Can't tell if the economy is growing
3. GNP inflated due to expatriates
4. GNP decreased due to foreign direct investment
Limitations of cpi:
It does not measure price changes in regional, rural or remote areas. The CPI also does not take into account the differences in spending patterns between individual households. Households are very different and some may spend a lot more on a certain items than others.