EFFECTS OF

ECONOMIC
GROWTH
 POSITIVE EFFECTS
Increase In employment factors
Increase in production of goods and services reflects an
increase in call for more labor as well as employees for
jobs. So employment curve gradually increases, resulting
in proper sharing of nation’s wealth. It also relates to the
benefit of the business people as it increases profits.
No taxes if there is an Economic Growth
If country’s revenue increases then there is no need for
tax imposition on people. Because now the government of
that country is having more revenue with it to invest on
poor people as well as on welfare of the people like,
providing financial supports and goods to public.
 NEGATIVE EFFECTS
Effects to natural resources and consumption of more
resources
Due to increase in production, there will be an increase in
industry sector as well as production sector resulting in
increase in pollution and industry effluents, less space for
transportation as more industries come to picture. All this will
have bad consequences such as loss of natural resources due
to pollution and deforestation.
Higher costs of goods and services
Sometimes increase in real GDP, creates changes that people
cannot reform and experience poverty as the pie of the wealth
of the country may not be distributed properly.