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In lay terms, it refers to the increase in the quantity of services and goods that an economy produces over time (Jones, 2002). It is also defined as the enduring expansion of the economy’s productive potential (Jones, 2002). It…
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Download file to see previous pages... Each of these measures has its share of advantages and disadvantages.
Every government strives to see that its jurisdiction records positive economic growth with as high a magnitude as possible. For every economy, growth is important as it is associated with several benefits. Some of the benefits associated with economic growth include: higher living standards, higher employment, higher fiscal dividend, business confidence and growth, and accelerated investment according to Jones (2002). Economists believe that two key factors drive economic growth; the level of technology and amount of capital per hour worked (Jones, 2002). This being the case, there are a number of measures that can be effected to boost economic growth. Some of these include investing more in capital goods, creating employment, using technology to increase productive capacity, improved education, increasing saving, and limiting consumption spending.
Different economies have different growth rates due to a variety of factors as stated by Jones (2002). World Bank statistics (year 2011) indicate that the United States of America has an economic growth rate of 1.7% (World Bank, 2012). The United Kingdom which is also a major player in the global scene has a lower economic growth rate, placed at 0.7%. One of the countries with a high economic growth rate is Argentina, at 8.9%. Other economies with impressive growth rates include Timor-Leste (10.6%), Turkmenistan (9.9%), China (9.3%), Mongolia (17.3%), and Qatar 18.8% (World Bank, 2012). From the statistics provided above, it is clear that Qatar has the most impressive record of economic growth currently.
Some of the countries with the lowest economic growth rates include: Croatia (0.0%), Ireland (-0.7%), Cote d’Ivore (-4.7%), Sudan (-4.9%), Greece (-6.9%), and Yemen (-10.5%) according to World Bank ...Download file to see next pagesRead More
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