What is economic growth?

Economic growth is the amount of production in the country or region for a certain period of time. While financial ministers can monitor these growth figures every month, it is generally quarterly and annual numbers that attract the greatest attention. In addition to production, measured through gross domestic product (GDP), local governments and individuals can use another standard to measure economic growth. If, on the other hand, GDP was only $ 75 billion USD, growth would be -25%. In most cases it is still referred to as growth, even if it is a contraction of the economy.

Most of them consider economic growth to be one of the safety symptoms of the country's overall health. More business means more jobs and more jobs means more consumption, which leads to greater production. It can be a very good circle you get into. However, a lot of things this growth tends to come and walk in cycles.

If it hasThe country two quarters of a lower GDP than the previous quarter, it is said to be in the recession. The recession tends to come twice by ten years historically and some are more serious than others. The extended recession is called depression, although the definition of depression has never been established by economists. It is enough to say that economic numbers are generally on the negative side for many neighborhoods.

For some jurisdictions, economic growth is better measured by other means, although they are usually local anomalies. For example, a city that receives most of its money through real estate taxes may consider growth if the values ​​of the property increase. They can derive because the values ​​of real estate have increased, people make improvements. If they make improvements, growth occurs. This may or may not be an accurate pre -confinement.

In general, the public may be tempted to measure economic change through numbers of jobs. This is particularly important for the general public, which is often not interested in production number. IfThey create tasks, it means that wealth is created and spread. This can be perhaps one of the best measures of economic growth. If jobs are not created or lost, this generally leads to a depressive economic condition, especially in persons affected by individuals and perhaps for the region in general.

Economic growth means different things for different people. While economists, governments and individuals can have all their opinions on what it should represent, the truth is that all these things that work together help to create a overall healthy economy. Without one piece, the whole puzzle may fall apart.