- Economic growth raises real incomes and living standards, enabling households to consume more goods and services.
- It increases tax revenues without raising tax rates, giving governments more scope to fund healthcare, education, pensions and infrastructure.
- Growth reduces unemployment by creating new jobs and encouraging firms to invest.
- It helps lower relative debt burdens because GDP rises faster than liabilities.
- Higher growth supports business confidence and innovation, improving productivity over time.
- It can reduce poverty by expanding opportunities and wages. Internationally, fast-growing economies attract inward investment and strengthen competitiveness.
Full post - Importance of economic growth
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3 comments:
No one is explaining clearly WHY the UK deficit has got so much worse so suddenly in 2009.
What items are (roughly) responsible for each part of the increase?
2008 Financial Crisis, read the following:
https://www.ifs.org.uk/publications/13302
Are the answers the same with why economists take much attention to economic growth matters
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