Second year master Mony economic and banc

Second wave

To prepare Boubakar Atmane

belhallouche aek
Ouaref mohammed
 Introduction

All people in This area hap to

live batter but a way to realize
that is very difficult because a
factors to arrive in this goal face
infinitely needs and limited
sources so ever government in all
world try to get a best life of here
society by a real economic
growth based in scientific lies
theories

So what is growth economic and what is his factors 

Economic growth is an increase in the production of goods and services
over a specific period. To be most accurate, the measurement must
remove the effects of inflation.

Economic growth creates more profit for businesses. As a result, stock

prices rise. That gives companies capital to invest and hire more
employees. As more jobs are created, incomes rise. Consumers have
more money to buy additional products and services. Purchases drive
higher economic growth. For this reason, all countries want positive
economic growth

Economic growth is the increase in the inflation-adjusted market

value of the goods and services produced by an economy  over time.
It is conventionally measured as the percent rate of increase in real
gross dometic product (GDP).
 Measuring
economic growth
The economic growth rate is calculated from data on
GDP estimated by countries' statistical agencies. The
rate of growth of GDP per capita is calculated from
data on GDP and people for the initial and final
periods.

Determinants of
per capita GDP
growth

In national income accounting, per capita output can be

calculated using the following factors: output per unit of
labor input (labor productivity), hours worked (intensity),
the percentage of the working age population actually
working (participation rate) and the proportion of the
working-age population to the total population
(demography).
- Productivity - Intensity (hours worked) -Demographic changes
Types of economic
growth

There are different types of economic growth

Boom and bust economic cycles. If growth is very fast and
inflationary, then the growth will prove to be unsustainable
and there will be the costs of the recession and an
economic downturn.
Export-led growth. Economies such as Japan and China
have experienced export-led growth. This enables
economic growth and a current account surplus. China has
increased its ownership of foreign assets.
Consumer-led growth. Since 1979, UK economic growth
has been more dependent on consumer spending.
Commodity exports. Some countries very rich in resources
have economic growth based on production and export of
raw materials. For example, Saudi Arabia (oil).
 -Political institutions, property rights, and rule of law
-Entrepreneurship
Other factors
-Capital
affecting growth -New products and services
- Growth phases

Benefits of economic growth

1-Higher incomes for workers and firms.

2-Increased tax revenue for the government which can be spent on public
services, e.g. education, pensions and healthcare.
3-Reduced government debt. Higher economic growth usually reduces
the government’s budget deficit because of the improved tax revenues.
4-Economic growth Helps create employment and reduce unemployment.
5-Economic growth creates a positive feedback loop. Higher growth
encourages firms to invest. Increased investment enables higher growth
in the future.
6-Economic growth enables a reduction in absolute poverty. In the past
100 years, growth has helped to significantly reduce absolute poverty in
Western Europe, US and recently in Asia.
Causes of Economic Growth

Economic growth can be spurred by a variety of factors or

occurrences. Most commonly, increases in aggregate
demand encourage a corresponding increase in overall
output that brings in a new source of income. Technological
advancements and new product developments can exert
positive influences on economic growth. Increases in
demand or availability in foreign markets that result in
higher exports can also have positive influences. This can
be due to the spread of previously unavailable products
into a new market or increases in the particular market’s
economic standing that raise the discretionary income of its
citizens. As demand rises, associated sales levels also rise.
This influx of income causes an increase in the economic
growth rate.
Generating Economic
Growth

There are only a few ways to generate economic growth.

The first is a discovery of new or better economic resources.
Another way to generate economic growth is to grow the labor
force. All else equal, more workers generate more economic
goods and services.
A third way to generate economic growth is to create superior
technology
The last method is increased specialization. This means laborers
become more skilled at their crafts, raising their productivity
through trial and error or simply more practice.
There are also actions that the government can take in order to
spur economic growth, and most governments try to do what
they can to manage growth within the economy In order to
stimulate growth. 
Potential costs of
economic growth

1-Inflation : If growth is too fast, we could experience

inflation.
2-Current account deficit. If growth is unbalanced, we
could see a growing current account deficit as people
buy more imports.
3-Environmental costs. Economic growth leads to
higher resource consumption and pollution.
4-Decline in living standards. Economic growth does
not always increase living standards. Higher growth
could cause new problems such as congestion,
pollution, increased crime, increased dissatisfaction
and more pollution.
 Conclusion

After all this we can to say

that the factors and measure of
economic growth are varied
because it’s depends to
capacities and Principe of ever
country but there is one both
factor this factor is human
growth .
reference
www.thebalance.com/what-is-economic-growth-3306014
Measurements, Causes, and Effects
www.en.wikipedia.org/wiki/Economic_growth Economic growth
www.investopedia.com/terms/e/economicgrowthrate.asp
www.economicshelp.org/macroeconomics/economic-growth/