Economic Growth and Development
1️⃣ Economic Growth
Meaning
Economic growth refers to the increase in the production of goods and services in an
economy over time.
It is usually measured in GDP growth rate.
Features
● Quantitative (numbers-based)
● Short-term
● Focus on increasing income and output
Indicators
● Gross Domestic Product (GDP)
● Gross National Product (GNP)
● National Income
Example:
If a country’s GDP increases from $2 trillion to $2.5 trillion → economic growth has
occurred.
2️⃣ Economic Development
Meaning
Economic development refers to improvement in living standards, income, education,
health, and overall quality of life.
It focuses on human well-being, not just production.
Features
● Qualitative (quality-based)
● Long-term
● Includes social, political, and economic improvement
Key Indicators
1️⃣ Economic Growth
Meaning
Economic growth refers to the increase in the production of goods and services in an
economy over time.
It is usually measured in GDP growth rate.
Features
● Quantitative (numbers-based)
● Short-term
● Focus on increasing income and output
Indicators
● Gross Domestic Product (GDP)
● Gross National Product (GNP)
● National Income
Example:
If a country’s GDP increases from $2 trillion to $2.5 trillion → economic growth has
occurred.
2️⃣ Economic Development
Meaning
Economic development refers to improvement in living standards, income, education,
health, and overall quality of life.
It focuses on human well-being, not just production.
Features
● Qualitative (quality-based)
● Long-term
● Includes social, political, and economic improvement
Key Indicators
