• Economic growth
Economic growth is dependent upon the value of goods and services within a country or other geographic area, and it is measured by the increases or decreases compared to the previous year. If the annual value is higher than the year before it is said that there has been a positive economic growth; if it is less than it was the year before, it is called negative economic growth, depression or recession.
Positive economic growth can be as a result of an increase in production of existing products and services; an increase in more expensive goods and services; and an increase in the number of goods and services that are produced.
• Economic development
Economic development covers a spectrum of things and is used in reference to the efforts made by policymakers and communities to improve standards of living and the economic well being of a country or geographical area.
This can mean the ongoing development of critical infrastructures; social inclusion, environmental sustainability; health; and regional competiveness. Economic development is different from economic growth because the former depends upon policy intervention with the overall wellbeing of the people within the area being of primary concern, whereas the latter is a result of market productivity.
• Relationship between the two
Economic growth is just one aspect of economic development, albeit an important one. Without economic growth there is less funding available to implement policy and so development can be inhibited, which in turn can have a direct impact on growth. This is because necessary input to facilitate things like training will be reduced, and so skills will not be learned, which will have negative consequences on productivity.
Economic growth is dependent upon the value of goods and services within a country or other geographic area, and it is measured by the increases or decreases compared to the previous year. If the annual value is higher than the year before it is said that there has been a positive economic growth; if it is less than it was the year before, it is called negative economic growth, depression or recession.
Positive economic growth can be as a result of an increase in production of existing products and services; an increase in more expensive goods and services; and an increase in the number of goods and services that are produced.
• Economic development
Economic development covers a spectrum of things and is used in reference to the efforts made by policymakers and communities to improve standards of living and the economic well being of a country or geographical area.
This can mean the ongoing development of critical infrastructures; social inclusion, environmental sustainability; health; and regional competiveness. Economic development is different from economic growth because the former depends upon policy intervention with the overall wellbeing of the people within the area being of primary concern, whereas the latter is a result of market productivity.
• Relationship between the two
Economic growth is just one aspect of economic development, albeit an important one. Without economic growth there is less funding available to implement policy and so development can be inhibited, which in turn can have a direct impact on growth. This is because necessary input to facilitate things like training will be reduced, and so skills will not be learned, which will have negative consequences on productivity.
