Economic Growth, types and factors

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Economic growth :-

It refers to the process of increase in amount of goods and services produced in an economy over a long period of time.

It refers to persistence increase in real per capita income or real GDP. Economic growth is measured by increase in the amount of goods and services produced in a country.


Factors of Economic Growth :-

1. Natural Resources

2.  Physical Capital or Infrastructure

3.  Population or Labour

4.  Human Capital

5.  Technology

6.  Law


 Types of Economic Growth:-

1. Boom and Bust Business cycles

2. Export-led

3. Consumer

4. Commodity Exports


1. Boom and Bust Business cycle :- 

When growth is high speed and inflationary, then growth level will become unsustainable and lead a recession condition.

So, typically this type of growth is for a business cycle.


2. Export-led :- 

If a country have significantly more exports than imports then it is called Export-led.

E.g.  China and Japan economy.


3. Consumer :-

This economy depend on consumer spending to stimulate economic growth.

So, they also have a high current account deficit.

E.g. United States


4. Commodity Exports :- 

This economy is dependent on their natural resources.

Like- oil or iron ore

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