Economic expansion is the increase in the production of goods and services for the region’s population or the State over a specified period. It is also defined as an increase in the value of goods and services produced by the State. The importance of economic growth that we usually highlight.
Improving the state economy
The impact of economic growth on improving the country’s economy highlighting as follows: The country’s monetary growth improves the country’s financial situation. This growth contributes to an increase in the share of individuals in GDP.
Improving the standard of living – The impact of economic growth on improving people’s standard of living is highlighted: Monetary growth helps enhance the standard of living of individuals in the country. Monetary growth helps provide a decent and well-being life for citizens.
Improving the state budget – The impact of economic growth on improving the state budget highlights as follows: Monetary growth reduces the state budget deficit. This growth improves future fiscal outlooks. And reduces the future deficit of the state budget.
Improving goods and services in the country The impact of monetary growth on enhancing goods and services in the country is highlighted as follows: The State can tax revenue. This process contributes to providing capital to improve the State’s assistance to citizens. Therefore these services are health care, education, social services and the public.
Factors that Help achieve Economic Growth
One of the most critical factors that help achieve monetary growth is investing in city companies and employing more people. Make tax cuts where they help return money to consumers and increase spending.
Improve companies’ infrastructure to motivate them to hire more workers and improve the efficiency of work, and products. And also, services.
Challenges to Economic Growth
Labour The availability of productive labour is one of the most important reasons for the country’s economic growth. On the other hand, high unemployment leads to a deterioration of the state economy and a significant decline in productivity. On the other hand, weak or inexperienced labour in various areas worsens the economy of the sector in which it operates. Thereby deteriorating the economy of the State as a whole.
Poverty – The lack of equality in the economic status of citizens, leads to a deterioration of the economy, and the failure of all groups of society to involves in the growth process often fails and thus increases poverty rates.
Sector disruption Some sectors face troubles in their productivity and functioning as a result of some circumstances beyond their control. For example, epidemics, which may lead to a decline in the rate of economic growth in the world.
Loss of emergency solutions Some sectors may expose to bankruptcy or circumstances that prevent them from providing income to employees, disrupting employees’ work. Reducing their productivity. Thereby disrupting monetary growth.
Some companies may expose to economic shocks so companies cannot provide urgent solutions to deal with these problems. And also, leading to a deterioration in the country’s overall financial situation.
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