Economic growth and development is the primary goal behind all the economic activities of any country. All the economic activities in different sectors like the medical sector and banking sectors are performed for facilitating Economic growth and development. It is indispensable for every country to promote good economic growth and products to rank high globally. Although, the rate at which any country grows depicts how much it is upgrading itself by time and how much its citizens’ standard is improving.
However, economic growth and development are both the same things but slightly different due to certain economic domains. This article will explain the difference between economic growth and economic development.
Economic growth can be said when the country upgrades itself in terms of quantity. It means the government is increasing its total output and production. So, in one year, any country’s output increases. In comparison to previous years, it is called economic growth.
Economic growth can also be demonstrated as an up-gradation in the inflation rates of any country. Although, in a precise way, Economic growth is the increase in any country’s GDP (Gross Domestic product).
Economic development can be said when the country upgrades itself in terms of quality. It means that the government is improving the quality of output or production. Although economically, economic development is the systematic process in which any country’s citizens’ standard of living improves over time.
Along with this, economic development can also be termed as “modernization” or “industrialization.” It is an excellent study in terms of economic changes and the country’s growth.
Difference between Economic Growth and Economic Development
Both the terms are related to each other, but they are still slightly apart from each other. As it is already clear, economic growth is the domain that focuses on quantity, and economic development is the domain that focuses only on quality.
Let’s learn more about how to distinguish between economic growth and economic development.
So, we can easily distinguish between economic growth and economic development in this way.
Factors affecting economic growth and development
Both economic growth and development are correlated to each other. The declination in one will affect the other as well. If a country cannot make economic growth, it will not do economic development either. So, it’s indispensable for the government for every country to understand the relationship between them and work on those factors which affect both economic growth and development.
Some factors which laid impact on the economic growth and development of any country:
Human resources are the main asset of any country—the skills of laborers, youth talent, business people’s intelligence, and so forth. If the human resource of any country is very skilled and developed, then the government will make economic growth and development.
Natural resources are another prominent factor that affects economic growth and development. The availability, quantity, and quality of natural resources serve too much in the growth of any country. However, a country abundant in natural resources makes development faster.
The type of technology a country uses is another crucial factor that affects economic growth and development. If the government is technically strong, it means using high-quality machines and software, which will automatically produce high outputs. Also, technology is an essential factor that reduces man labour up to many extents and facilitates automation in several economic operations.
Economic Growth and Development are essential for any country to rank at the top globally. The government needs to focus on quality and quantity to attain good economic conditions. Economic growth and economic development separately describe the role of quality and quantity of goods. High quantity with high quality is the key to financial success for any country. So in this article, we learn about economic growth and development, along with the difference between economic growth and development.