Differentiate between Economic growth and Economic development.

Differentiation Between Key Economic Concepts

a. Economic Growth vs. Economic Development

• Economic Growth:

  • Economic growth refers to an increase in the output of goods and services in an economy. It is typically measured by the rise in Gross Domestic Product (GDP) or Gross National Product (GNP).
  • It is a quantitative measure, focusing on the rate at which an economy's total income increases over time.
  • Economic growth primarily indicates the expansion of an economy's productive capacity and an increase in its output.

• Economic Development:

  • Economic development, on the other hand, is a broader concept that encompasses economic growth but also includes improvements in quality of life, welfare, and the standard of living of the population.
  • It involves qualitative measures such as health, education, poverty reduction, equality, and environmental sustainability.
  • Economic development focuses on the overall improvement in the economic well-being and quality of life of people, not just the increase in income or output.