Economic growth
• Economic Growth is the positive change in the indicators of the economy.
• Economic Growth refers to the increment in the amount of goods and services produced by an economy.
• Economic growth means an increase in real national income / national output.
• It refers to an increase over time in a country’s real output of goods and services (GNP) or real output per capita income.
• Economic growth is single dimensional in nature as it only focuses on income of the people.
• Earlier, economic growth was only measured in terms of Gross Domestic Product (GDP).
• At present, it is measured in terms of GDP, Gross National Income (GNI) and Per Capita Income.
• Economic Growth is the precursor and prerequisite for economic development.
• Indicators of economic growth are GDP, GNI and per capita income.
• Economic growth relates a gradual increase in one of the components of GDP; consumption, government spending, investment or net exports.
• It is also considered as a traditional measure of development which indicates the quantitative rise of economy.
• Economic growth only looks at the quantitative aspect. It brings quantitative changes in the economy.
• Economic growth is concerned with increase in economy’s output.
• It focuses on production of goods and services.
• Economic growth is more relevant metric for assessing progress in developed countries.
• Economic growth is relatively narrow concept as compared to economic development.
• It is for short term/short period.
• It is a material/physical concept.
• Economic growth is measured in certain time frame/period.
