Economic growth is a simultaneous increase in the inflation-adjusted value of goods and services in a country over a specific period of time. Economic growth generates more profit for businesses which in return creates more profit for investing and hiring more employees. The primary estimate for this state in a country is evaluated using Gross Domestic Product. A decline in GDP, however, indicates economic recession, a state that causes a rise in poverty and increased inequality, a despicable economic state.
Countries that realize much economic development have denounced path of economic and political freedom. There is an antique belief that economic progress is subject to extensive aid and investment programs, a course that facade inequality and over-valued currencies. Irrespective of the path, economic freedom has detachable evidence to economic development. Besides, the role of the government in an economy is very crucial for her growth, from tariffs, taxation, restrictions on foreign investments and price control to general business regulations and property right; these activities can be directed to revitalize or depress trade and protect natural resources to her economic capacity (Peter, 2002). Conversely, deficient government interventions and path can cause an economic recession. For instance, high-interest rates imposed by the government can limit liquidity. Moreover, too high prices imposed by the authority can cut demands slowing down manufacturing, a process that transpires to unemployment.
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Conclusively, economic dynamism is widely influenced; however, the dominant influence relies on the countries interventions and measures. Besides, economic growth is not everything, integration of other factors such as economic security is very key for economic development. Therefore, a free economy should adversely consider its regulations and policies for economic development are avoiding detrimental recessions that may crush its economy.
