Economic growth refers to an increase in the production of goods and services in an economy over time. It is commonly measured using indicators like Gross Domestic Product (GDP), national income, and employment rates. Economic growth reflects expanding business activity and rising income levels.
While economic growth boosts employment and investment, uncontrolled growth can harm the environment. Therefore, sustainable growth focuses on balancing economic progress with environmental protection.
Types of Economic Growth:
- Short-term growth: Driven by increased demand or investment
- Long-term growth: Based on innovation, education, and infrastructure
Examples:
- Growth of the IT sector increasing national income
- Industrial expansion creating new employment opportunities
