Economic growth is an increase in the total amount of goods and services produced by a country over time. It is usually measured by the rate of change in gross domestic product (GDP), or other measures such as inflation-adjusted GDP per capita, and it is a key indicator of prosperity. Sustained economic growth is widely believed to reduce poverty, increase living standards, and promote human development.
There are many different things that contribute to economic growth, including improved productivity and access to resources. Technology is a key driver of long-term economic growth, as it increases the amount of output that can be produced with each unit of input. For example, a computer built today requires the same inputs as one made 10 years ago, but it can produce far more output.
A growing economy can also benefit people by providing jobs, lowering prices, and increasing incomes. However, it is important to note that not all aspects of economic growth are positive. For example, economic growth can have negative impacts on the environment, as it may lead to pollution and depletion of natural resources. It can also increase inequality, as gains from growth are often concentrated among the wealthiest members of society.
Because of its many positive effects, economic growth is a high priority for most governments and multilateral institutions. This means that there is a lot of time, money, and energy already being devoted to promoting growth. Therefore, individuals hoping to make a difference with this issue should look for niche opportunities that are not being tapped by existing efforts.