One of the main goals of national economic policy everywhere in the globe is economic growth. This creates jobs, solves social conflicts and facilitates structural change. Because of growth in the economy, government can invest more money in development aid and environment protection.
Why is growth important for the modern economy?
Economic growth means that an economy produces more and better goods and services than in the past. Economic growth is particularly important when these goods and services lead to an increase in the standard of living of broad sections of the population. In other words, everyone should benefit from economic growth. History shows that economic growth has indeed lifted many people out of poverty, disease, or unemployment. In addition, of course, economic growth also helps to finance the welfare state.