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Economic Growth

Definition

Economic growth refers to an increase in a country's production of goods and services over time, resulting in a rise in the overall standard of living for its citizens.

Analogy

Think of economic growth as a roller coaster ride. When the roller coaster goes up, it represents the increase in production and prosperity that comes with economic growth. The higher it goes, the better off the country becomes.

Related terms

Gross Domestic Product (GDP): GDP is a measure of all the goods and services produced within a country's borders during a specific period. It is often used as an indicator of economic growth.

Human Development Index (HDI): HDI measures a country's overall development by considering factors such as life expectancy, education levels, and income per capita. It provides a broader view of well-being beyond just economic growth.

Sustainable Development: This term refers to development that meets present needs without compromising the ability of future generations to meet their own needs. It emphasizes long-term environmental sustainability alongside economic growth.