How does household production impact the assessment of a country's economic welfare as reflected in GDP figures?

Household production refers to the value of goods and services produced within a home, such as cooking, cleaning, and childcare. This type of work is not included in Gross Domestic Product (GDP) calculations because GDP only measures market transactions where money changes hands. This means that when families perform these tasks themselves instead of hiring someone, their contributions to the economy are overlooked. For example, if a parent stays home to care for their children instead of paying for daycare, that value is not counted in GDP, even though it significantly affects economic welfare. Therefore, relying solely on GDP figures can underestimate the true economic contributions of households and may not fully reflect the well-being of a country's citizens.