Economic growth is defined as the increase of market value in services and goods that’s produced by the economy over time. For a more thorough definition…
It’s the outward direction in the PPC or Production Possibility Curve. Economic growth is being measured by the Gross National Product or GNP and Gross Domestic Product or GDP and how much they have increased. The country’s GDP is the overall value of all services and goods produced within the country for a certain period of time. Having said that, getting a GDP increase is equivalent to the increase in production of the said country.
Growth is not a one-man thing. Events in the region and country bring a massive impact on the growth of nation as a whole. Let me give you an example:
If there is a ban on outsourcing workforce in the US, then this may hamper the GDP of another country that is sending manpower to the state.
Most of the developed economies have experienced slower growth in their economy than developing countries. More often than not, Economic Development and Economic Growth are used interchangeably; wherein reality, these two are different. Development is alleviating people from the low or poor standard of living to proper employment. Economic Growth on the other hand doesn’t take into consideration the usage of natural resources. Development though is focused on sustainability. In other words, it meets the present needs without compromising or damaging future needs.
Economic growth is actually among the vital indicators that an economy is booming. As the GDP of a country increases, it’s more productive leading to more employment among its citizens. Along with the employment includes more businesses like californiatitleloans.org. These businesses, when combined together boost the country’s wealth and population.
It’s a Two-Way Road
Through economic growth, it is helping with the improvement of living standards of people by means of reducing poverty. However, these improvements can’t take place without impacting the economic development on the process. Economic growth on its own would not be capable enough in eliminating poverty.
And this is the exact reason why other factors come into play such as labor and population. With a growing population in a country, this is an indication that there’s increase in number of available manpower. With that, it translates to higher workforce. It’s all in the country’s leaders on how to distribute their people to meet the demands and have continuous growth.