Gross domestic product The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies.
In a certain period of time. Definition of Economic Growth Economic Growth is defined as the rise in the money value of goods and services produced by all the sectors of the economy per head during a particular period. It is a quantitative measure that shows the increase in the number of commercial transactions in an economy.
It lets us compare in absolute and percentage change, i. It is an outcome of the increase in the quality and quantity of resources and advancement of technology. In short, it is the progress in the socio-economic structure of the economy.
Based on the development, the HDI statistics rank countries. Key Differences Between Economic Growth and Economic Development The fundamental differences between economic growth and development are explained in the points given below: Economic growth is the positive change in the real output of the country in a particular span of time economy.
Economic Development involves a rise in the level of production in an economy along with the advancement of technology, improvement in living standards and so on.
Economic growth is one of the features of economic development. Economic growth is an automatic process. Unlike economic development, which is the outcome of planned and result-oriented activities. Economic growth enables an increase in the indicators like GDP, per capita income, etc.
On the other hand, economic development enables improvement in the life expectancy rate, infant mortality rate, literacy rate and poverty rates.
Economic growth can be measured when there is a positive change in the national income, whereas economic development can be seen when there is an increase in real national income. Economic growth is a short-term process which takes into account yearly growth of the economy.
But if we talk about economic development it is a long term process. Economic Growth applies to developed economies to gauge the quality of life, but as it is an essential condition for the development, it applies to developing countries also.
In contrast to, economic development applies to developing countries to measure progress. Economic Growth results in quantitative changes, but economic development brings both quantitative and qualitative changes. Economic growth can be measured in a particular period.
As opposed to economic development is a continuous process so that it can be seen in the long run. Example To understand the two terms economic growth and economic development, we will take an example of a human being.
But if you talk about human development, it will take into account both the physical and abstract aspects like maturity level, attitudes, habits, behaviour, feelings, intelligence and so on.
In the like manner, growth of an economy can be measured through the increase in its size in the current year in comparison to previous years, but economic development includes not only physical but also non-physical aspects that can only be experienced like improvement in the lifestyle of the inhabitants, increase in individual income, improvement in technology and infrastructure, etc.
Conclusion After the above discussion, we can say that economic development is a much bigger concept than economic growth.Broad-based economic growth is essential to sustainable, long-term development.
It creates the opportunities impoverished households need to raise their living standards, provides countries with the resources to expand access to basic services, and—most important of all—enables citizens to chart their own prosperous futures.
Having economic growth without economic development is possible. Economic growth in an economy is demonstrated by an outward shift in its Production Possibility Curve (PPC). Another way to define growth is the increase in a country’s total output or Gross Domestic Product (GDP).
Learn what economic development is and why you may play a part in it every time you purchase something at the store. Find out who sponsors economic development and some of the most common.
Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.
Ceteris paribus, we would expect economic growth to enable more economic. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
It can be measured in nominal or real terms, the latter of. A country's economic health can usually be measured by looking at that country's economic growth and development.
This lesson defines and explains economic growth and economic development.