Definitions

What is Economic Growth? And It’s Features.

The meaning of the term economic growth, it is necessary first to discover the etymological origin of the two words that shape it:

Growth, first, derives from Latin, exactly from the verb “crescere,” it can be translated as “increase in size using what is an organic and natural development.”
Economic, secondly, comes from the Greek. It is the result of the sum of three clearly defined components: the noun “Oikos”, which means “house”; the name “nomos,” which is synonymous with “rule”; and the suffix “-ikos,” which is used to express “relative to.”

Growth is the act and consequence of growing up, a verb that alludes to enlarge, increase, or expand. Economic, meanwhile, is that linked to the economy (the discipline that studies how to manage existing scarce goods to meet the material needs of the human being).

The economic growth refers to the increase of different indicators of the economy of a country. If investments, the production of services and goods, expenditure and energy consumption increase, for example, it can be said that this nation registers economic growth. This growth usually results in an improvement in the quality of life of the population, since people have more money available.

    There are numerous features that are measured to achieve and favor the economic growth of an area. We are referring to some as relevant as these:
  • The natural resources that place has.
  • The available capital, materialized, above all, in what are industries and machinery.
  • The workforce that is owned. And the more labor there is, the more the productive capacity of that area can increase.
  • Of course, another factor that significantly influences the aforementioned economic growth is the set of technology and technological advances that exist in that place. And these are going to allow, among other things, to increase production using the same resources and improving the effectiveness and efficiency of workers.
  • The work experience, the training, and the training that the workforce has.

In a general sense, economic growth implies an increase in the value of services and final goods that are produced in a certain territory during a specific period. This value is known as the Gross Domestic Product (GDP).

The increase in GDP, thus, reflects economic growth. According to various economists, this measure is not enough to determine if the quality of life of the inhabitants improved, but it is necessary to analyze the growth of GDP per capita.

Other specialists warn that economic growth does not imply that all people have employment (and, therefore, income) or that public services are efficient, two variables that must be met for a good quality of life. In any case, there is a consensus about the benefits that economic growth brings to a country.

In addition, you can find more helpful resources at Smart Tech Data.

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