Explain the difference between economic growth and economic development.

Economics Economic Development Questions



80 Short 68 Medium 52 Long Answer Questions Question Index

Explain the difference between economic growth and economic development.

Economic growth refers to an increase in the quantity of goods and services produced in an economy over a specific period of time. It is typically measured by the growth rate of the Gross Domestic Product (GDP). Economic growth focuses on the expansion of the economy's output and is often associated with indicators such as increased income, employment, and productivity.

On the other hand, economic development encompasses a broader concept that includes not only the increase in the quantity of goods and services but also improvements in the quality of life and well-being of individuals within a society. It involves social, political, and institutional changes that contribute to sustainable and inclusive growth. Economic development takes into account factors such as poverty reduction, access to education and healthcare, infrastructure development, and the promotion of social equality.

In summary, while economic growth primarily focuses on the expansion of the economy's output, economic development encompasses a more comprehensive approach that considers the overall improvement in the standard of living and well-being of individuals in a society.