Table Of Contents

. What is economic growth

. What is economic development
. Difference between economic growth and economic development
. Why economic growth and economic development are important
. Conclusion
 WHAT IS ECONOMIC
GROWTH?
Economic growth can be referred to as the increase that is
witnessed in the monetary value of all the goods and services
produced in the economy during a time period. It is a type of
quantitative measure that reflects the potential increase in the
number of business transactions taking place in the economy.
It can be measured in terms of the increase in the aggregate
market value of additional goods and services produced by using
economic concepts such as GDP and GNP.
Economic growth is a narrow concept when compared to economic
development.
 WHAT IS ECONOMIC
DEVELOPMENT?

Economic development refers to the process by which the overall

health, well-being, and academic level of the general population of a
nation improves. It also refers to the improved production volume
due to the advancements of technology.
It is the qualitative improvement in the life of the citizens of a
country and is most appropriately determined by the Human
Development Index (HDI). The overall development of a country is
based on many parameters such as the creation of job opportunities,
technological advancements, standard of living, living conditions, per
capita income, quality of life, improvement in self-esteem needs,
GDP, industrial and infrastructural development, etc.
 DIFFERENCE BETWEEN ECONOMIC
GROWTH AND ECONOMIC DEVELOPMENT
Basis of Economic Growth Economic Development
Comparision
Meaning Economic growth is defined
as an increase in the
Economic development
entails changes in income,
country’s real output of savings, and investment, as
goods and services. well as gradual changes in
the country’s socio-economic
structure (institutional and
technological changes).

Factors Growth is defined as a

gradual increase in one of
Development related to
human capital growth, a
the components of GDP: reduction in inequality
consumption, government numbers, and structural
spending, investment, and changes that improve the
net exports. population’s quality of life.
 DIFFERENCE BETWEEN ECONOMIC
GROWTH AND ECONOMIC DEVELOPMENT
Basis of Economic Growth
Comparision
Measurement/ Economic growth is
measured quantitatively by
Example factors such as real GDP
growth or per capita income
growth.
Effect Quantitative changes in the
economy are brought about
by economic growth.
Economic Development
To assess economic
development, qualitative
indicators such as the HDI
(Human Development
Index), gender-related
indexes, Human Poverty
Index (HPI), infant mortality,
literacy rate, and so on are
used.
Economic development
results in both qualitative
and quantitative changes in
the economy.
 DIFFERENCE BETWEEN ECONOMIC
GROWTH AND ECONOMIC DEVELOPMENT

Basis of Economic Economic

Comparision Growth Development
Relevance Economic growth Economic
reflects national or development reflects
per capita income progress in a
growth. country’s quality of
life.
Why Economic Growth and Economic
Development are important?

• Economic growth is a widely used term in economics that is useful

not only for national level economic analyses and policy making but
also for comparative economics.
• International financial and commercial institutions base policy
making and future financial planning on the available growth rate
data for the world’s economies.
• The most important aspect of growth its quantifiability, or the
ability to quantify it in absolute terms.
• Development has not been possible anywhere in the world without
a conscious public policy.
Why Economic Growth and Economic
Development are important?
• Similarly, we can say that there can be no development without
growth.
• If economic growth is used properly for development, it will re-
accelerate growth and eventually bring a larger population into the
development arena.
• Similarly, high growth rate with low development leads to decline in
growth.
 CONCLUSION
• Economic development is a subset of economic growth. Economic
development encompasses a broader scope than economic growth.
• Economic development employs a variety of indicators to assess the state
of an economy as a whole; however, economic growth employs only a few
indicators for calculation, such as gross domestic product, individual
income, and so on.
• Economic growth is frequently contrasted with Economic Development,
which can be defined as an increase in an economy’s on nation’s economic
wealth for the benefit of its residents.
• It should be noted that economic growth is necessary but not the only
condition for economic development.