Economic Growth

What makes an economy grow, GDP

What Makes an Economy Grow

Economic growth means the economy produces more goods and services over time (measured by GDP). Growth creates jobs, raises living standards and reduces poverty. Factors include: investment, education, infrastructure, technology, stable government and trade.

Example

SA Economic Growth

What helps SA grow: • Investment in infrastructure (roads, electricity, ports) • Education and skills development • Support for small businesses • Technology and innovation • Stable government and rule of law • Trade with other countries What holds SA back: • Load shedding, unemployment, inequality, corruption • SA needs 5%+ GDP growth to reduce unemployment significantly

Note

Remember

GDP (Gross Domestic Product) measures the total value of goods and services produced. When GDP grows, the economy is expanding. When it shrinks, we are in recession. SA's growth has been too slow to reduce unemployment — we need faster, inclusive growth.

Key Vocabulary

Economic growthAn increase in the production of goods and services over time

GDPGross Domestic Product — total value of all production in a country

InvestmentSpending money on things that will create future returns

RecessionWhen the economy shrinks for two quarters in a row

SASL Avatar

Loading avatar...

1 / 4

Economic growth

Speed: