DISTINCTIONS OF ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT

Both Economic growth and economic development sound synonymously. However

these two concepts are different from each other. In broad sense, Economic growth is defined
as the increase in a nation’s production of goods or output and services. It also means an
increment in real national income in a particular span of time. Increases in capital goods, labor
force, technology, and human capital can all contribute to economic growth. Economic growth
of a country can be measured in nominal or real (adjusted for inflation) terms. Traditionally,
aggregate economic growth is measured in terms of gross national product (GNP) or gross
domestic product (GDP), although alternative metrics are sometimes used. Basically, economic
growth is a quantitative concept and it is much narrower concept compared to economic
development.

Economic development on the other hand, refers to the qualitative improvement in the
life of the citizens in a nation. This includes an overall development on infrastructures,
education, health care facilities, industrials and etc. This also means an improvement in the
production of goods because of technology advancements. This only means that, development
is concerned with how people are actually affected and the benefits people could get from it.

Moreover, these two concepts come together. So if one fails, the other won’t succeed.
If there would be no income produced by the economy, which leads to economic growth, it
won’t be possible for the government to sustain the needs of its people. Therefore, there would
be no economic development as well and vice versa; as what stated above, due to technological
advancement, production of goods increases. In this sense, I preferred both economic statuses
for the Philippines because the two classifications are complementary to each other. We need
both economic growth and economic development to have a positive outcome in our country.
In my own opinion we cannot only focus on one and let go of the other one. Economic growth
is what will lead to an economic development.

Furthermore, considering that Philippines is now under pandemic situation, economy is

ailing and finds it difficult to sustain the prevailing needs of its people, thus the pandemic
affects the economic growth of the country so does the economic development. This only
means that without economic growth, economic development won’t be easy to achieve.

REFERENCES:

Pettinger, T. (2018, September 23). Difference between economic growth and development

https://www.economicshelp.org/blog/1187/development/economic-growth-and-
development/

https://byjus.com/commerce/difference-between-economic-growth-and-economic-
development/