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The economic growth of a country may get hampered due to a number of factors, such as trade deficit and alterations in expenditures by governmental bodies. Generally, the economic growth of a country is adversely affected when there is a sharp rise in the prices of goods and services.
Factors that Determine Economic Growth and Development of a Country! The process of economic growth is a highly complex phenomenon and is influenced by numerous and varied factors such as economic, political, social and cultural factors.
Economic growth is one of the most important indicators of a healthy economy. One of the biggest impacts of long-term growth of a country is that it has a positive impact on national income and the level of employment, which increases the standard of living. Major Factors Influencing Economic Growth by Annie Sisk - Updated June 25, Economic growth is defined as an increase in the amount of goods or services an economy can produce, as measured over a certain period of time.
Traditionally, the factors used to determine economic growth are capital - both human and physical, productivity as mentioned by Ms. Fanni Likacsy, Research & Development, Institutional factors and Policies. Four Factors of Economic Growth 1. Ansley BennettLanier Middle School 4 Factors of Economic Growth• There are four factors that determine a country’s Gross Domestic Product for the year: – Natural Resources – Human Capital – Capital Goods – Entrepreneurship.