In order to know the meaning of the term economic growth, it is necessary, in the first place, to discover the etymological origin of the two words that give it shape:
-Growth, in the first place, derives from Latin, exactly from the verb “crescere”, which can be translated as “to increase in size through what is an organic and natural development”.
-Economic, secondly, comes from the Greek. It is the result of the sum of three clearly defined components: the noun “oikos”, which means “house”; the name “nomos”, which is synonymous with “rule”; and the suffix “-ikos”, which is used to express “related to”.
Growth is the act and consequence of growing, a verb that refers to enlarge, increase, increase or expand. Economic, meanwhile, is that linked to the economy (the discipline that studies how to manage existing scarce goods to meet the material needs of human beings).
- Abbreviationfinder: Find definitions of English word – International and its abbreviations III.
Economic growth refers to the increase in different indicators of a country ‘s economy. If investments, the production of services and goods, spending and energy consumption increase, for example, it can be said that said nation registers economic growth. This growth usually results in an improvement in the quality of life of the population, since people have more money available.
There are several factors that are considered to achieve and favor the economic growth of an area. We are referring to some as relevant as these:
-The natural resources that the place has.
-The capital that is counted, materialized, above all, in what are industries and machinery.
-The workforce that is possessed. And it is that the more labor there is, the more the productive capacity of that area can increase.
-Of course, another factor that notably influences the aforementioned economic growth is the set of technology and technological advances that exist in that place. And it is that these will allow, among other things, to increase production using the same resources and improving the effectiveness and efficiency of workers.
-The work experience, training and education of the workforce.
In a general sense, economic growth implies the increase in the value of services and final goods that are produced in a certain territory during a specific period. This value is known as Gross Domestic Product ( GDP ) or Gross Domestic Product ( GDP ).
The increase in GDP, in this way, reflects economic growth. According to various economists, this measure is not enough to determine if the quality of life of the inhabitants improved, but it is necessary to analyze the growth of GDP per capita (per inhabitant).
Other specialists warn that economic growth does not imply that all people have a job (and, therefore, income) or that public services are efficient, two variables that must be met for a good quality of life. In any case, there is a consensus about the benefits that economic growth brings to a country.