Week3.pptx - Economic Growth(GDP Growth versus Economic Development Human Development Index(HDI Multidimensional Poverty Index(MPI Week 3 Economic

Week3.pptx - Economic Growth(GDP Growth versus Economic...

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Economic Growth (GDP Growth) versus Economic Development, Human Development Index (HDI), Multidimensional Poverty Index (MPI) Week 3
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Economic Growth The most commonly agreed definition of Economic growth is the increase in production of goods and services in a country over a given period of time . Increase in country’s Wealth Economic growth creates more profit for businesses. As a result, stock prices rise. That gives companies incentive to invest and hire more employees. As more jobs are created, incomes rise. Consumers have more money to buy additional products and services. Purchases drive higher economic growth. For this reason, all countries want positive economic growth. This makes economic growth the most watched economic indicator
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How economic growth is measured ? As we know real GDP ( inflation adjusted) is the best way to measure economic growth. It takes into account the country's entire economic output. It includes all goods and services that businesses in the country produce for sale. It doesn't matter whether they are sold domestically or overseas. Most of the country measure economic growth quarterly. This is the best way to measure economic growth. It takes into account the country's entire economic output. It includes all goods and services that businesses in the country produce for sale.
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Drivers of Economic Growth They are commonly 4 factors of production: 1. land/natural resources 2. capital equipment 3. labour 4. entrepreneurship They can be the competitive edge of a country
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Economic Development In simple word economic development is a planned process which every country government strategically endeavours to improve ( from current level) its socio-political, economic and business and in welfare of its population. It is country’s achievements in increasing its output through efficiency and productivity which is directly related to economic growth as discussed previously. Economic growth deals with increase in the level of output, but economic development is related to increase in output coupled with improvement in social and political welfare of people within a country . Therefore, economic development encompasses both growth and welfare of the people of the country.
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Key Drivers of Economic Development Reduce Inflation and prices stability Less Unemployment ( job creations) Sound fiscal and monetary policies (central bank) Efficient financial system and institutions Effective Import and export strategies ( trade deficit/surplus)
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Key Drivers of Economic development Tax collection ( direct and indirect) Infrastructure improvement ( transport roads, health and education) Direct foreign investment level ( sector priorities) Stable political system ( electoral system) Efficient law and order and justice system (police and judiciary)
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