Why is the economic growth important?

Economic growth is one of the most important figures to every country in evaluating the development of economy of that country. It is measured as the change in gross domestic product (GDP) subtracting the inflation rate.

Suppose that the economy grows, this results an increase in the income of the customers. People are willing to customer more goods and services, which makes the demand go up. Consequently, it is potential for the economy to grow. In addition to that, when the economic growth is high, the government has more money to improve the infrastructures, invest more in education, health… Therefore, the living standard would be higher.

In conclusion, the economic growth is not the only to assess the development of a country but it is quite important. It reflects the prosperity of the country, the living standard and its welfare, which every governments aim to.