5 Factors That Affect The Economic Growth Of A Country

The economic growth of a country may get hampered due to a number of factors such as trade deficit and alterations in expenditures by governmental bodies. Technological progress and economic growth.

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5 factors that affect the economic growth of a country

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So we can see how the above economic factors affect the economy.

5 factors that affect the economic growth of a country. Generally the economic growth of a country is adversely affected when there is a sharp rise in the prices of goods and services. A country deficient in natural resources may not be in a position to develop rapidly. Among the natural resources the land area and the quality of the soil forest wealth good river system minerals and oil resources good and bracing climate etc are included.

Generally the economic growth of a country is adversely affected when there is a sharp rise in the prices of goods and services. For the proper functioning of the country the economy needs to be stable and at a macro level one can see the effect of that with stable business with competitive earnings. Supply of land and other natural resources 2.

Yet economic growth particularly the kind thats unchecked or unstable comes with a price tag which can include higher environmental costs or a spike in income inequality. It represents one of the most important determinants of a countrys economic growth. The principal factor affecting the development of an economy is the natural resources.

Following are some of the important factors that affect the economic growth of a country. Therefore the rate of economic growth that is increase in gnp depends upon the rate of investment and capital output ratio. This fact is brought out by the.

For economic growth the existence of natural resources in abundance is essential. These determinants of economic growth affect 1 the rate of investment and 2 captia output ratio. There are two problems associated with economic growth.

This can lead to increased political and social turmoil which often accompany boom or bust economic cycles. There are many other economic factors examples that affect economies like unemployment market land capital science and technology. Following are the various factors which affect economic growth of countries.

Pollution and other negative externalities often accompany increased production or increased economic growth. Experts and policy makers alike view economic growth as a universal good whether its being driven by an increase in goods exported to other countries or by increased consumer spending. Costs of economic growth.

The quality and quantity of available human resources can directly affect the growth of an economy. Economists usually associate an adverse impact on the environment with rapid growth in developing economies. In fact natural resources are a necessary condition for.

The economic growth of a country may get hampered due to a number of factors such as trade deficit and alterations in expenditures by governmental bodies. We have analysed above the various factors such as availability of natural resources rate of saving and capital formation foreign capital technological progress increase in population which determine economic growth in a country.

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