GDP or the Gross Domestic Product is the primary factor used in measuring economic growth. This is explained as the combined value of services and goods that a country produced within a year. There are a lot of forces that are contributing to economic growth. On the other hand, there’s no single factor consistently spurring the ideal or perfect amount of growth for economies.
How can it be Attained?
World leaders and respective politicians in each country have long been debating the best growth rate and at the same time, on how they can achieve it. It is vitally important to give ample time to study how economy grows.
This means that there should be consistent effort to understand what or who are the driving elements that make economies to move forward.
Driving Factors of Economic Growth
In the US, the driving element for economic growth is typically business investment and consumer spending. If consumers are for instance buying homes, then contractors, construction workers and home builders are expected to experience growth in their industry.
Businesses are also driving the economy by means of hiring workers, investing in business expansion and raising wages. Company that’s buying new manufacturing plant or investing in R&D is creating new jobs that then leads to economic growth.