Significance Of Economic Growth

You can express the change in the gross domestic product of an economy in terms of economic growth. Thus, it can be both negative and positive.

Connotation of economic growth

The great importance of economic growth in a national economy is omnipresent. You may encounter the term economic growth almost every day in daily newspapers or news formats. The development of jobs, tax revenues of the state and thus also of the social security funds are directly related to the growth of the economy.

How to calculate economic growth?

This represents the increase in the gross domestic product of an economy. It indicates the value of all goods and services that an economy generates often related to one year.

Economic growth, in turn, is reflected in the rate of change in real gross domestic product.

The reason for the increase in performance, i.e. for economic growth, can be better utilization of production capacities.