Menu
Meaning of Economic Growth (Short Definition):
Economic
growth refers to the increase in the production of goods and services in an
economy over a specific period, typically measured by the rise in a
country’s Gross Domestic Product (GDP) or Gross National Product
(GNP). It indicates the expansion of an economy’s capacity to produce and
consume.
Measurement of Economic Growth (Detailed
Explanation):
Economic
growth is measured using various indicators and methods. The most commonly used
metrics are:
1. Gross Domestic Product (GDP):
2. Gross National Product (GNP):
3. Growth Rate of GDP:
4. Productivity Measures:
5. Other Indicators:
Why GDP is the Most Common Measure:
Limitations of GDP as a Measure of Growth:
For a
holistic understanding, other metrics like the Human Development Index (HDI)
or Green GDP are often used alongside GDP to measure economic progress.
Notifications