The benefits/advantages of economic growth
- It increases the volume of goods and services that in turn increase human choice hence increases consumer sovereignty
- It increases a country’s tax base and government’s revenue. Also ensures provision of social services like education
- It raises the general standards of living of people overtime especially when per capita income grows over a long period of time
- It is powerful tool against poverty. Those who contribute towards economic growth escape the vicious cycle of poverty
- It brings about employment opportunities in many growing sectors of economy. This finally leads to income redistribution
- It improves the balance of payments f the country concerned. Increased output leads to increased exports and consequently reduces balance of payment deficit.
- Since economic growth increases output, the general price level is expected to fall. Commodities become relatively cheap. This reduces the rate of inflation and increases the rate of consumption.
- It contributes to a country’s prestige because as economy grow faster, its military and economic strength grow
- It improves literacy as people get money they educate their children
- It leads to industrialization as output from agriculture increases.
CATEGORIES Economics
TAGS Dr. Bbosa Science
