Economic growth bears fruit not just for the lifestyle and well-being of people but also for the development. It gives way to innovation, growth, prosperity, health, and advancement. Many factors determine the growth of the economy and are vital for it. Economically stable nations can provide more for their people, make better decisions and provide a better job opportunity. Those nations equipped with natural resources if lag on economics cannot provide their people with even the most necessities.
Factors that affect economic growth.
Economic stability gives rise to research and technological advancement that essential for future growth. There are many factors in play that determine and boost economic stability, and some of them are discussed below.
The effect of human resources.
Perhaps the most important factor that determines the economic growth of a country is the human resource factor. Both the qualitative and quantitative abilities determine the success of the economy and drive success. If the people are accomplished, creative, trained, and educated, all boost the economic growth and maintain it.
The effect of natural resources.
These also affect the growth of the economy. All the resources available on land and under it play an important part. They can significantly affect the standing of a country. It also comes down to how these resources are managed. If oil, gas, water, metals, and minerals are extracted and utilized properly it prospers the growth of a country.
The effect of capital formation.
This involves all modes of communication, transportation and production of goods within the nation. It allows the growth of finance available for each person in the country and grows the economy.
The effect of technology.
As we move towards a future that depends more on innovation and advancement than anything else, it must be brimming with technology. Technology cuts down on cost and makes work better and faster. Therefore, its growth potentially affects the growth of the economy.
Economic growth caters to prosperity in a country. If regard is paid to these factors, the economy can become superfluous in no time.