Difference between Economic Growth and Economic Development

Difference between Economic Growth and Economic Development

A prominent difference between Economic Growth and Economic Development is that Economic growth is a narrow phrase. It involves a gain in output quantitatively. In disparity, economic development includes changes in the quantitative upgrade of outcome or federal revenue along with qualitative terms (social philosophies and traditions). Many people use Economic Growth and Development interchangeably.

Economic Growth vs Economic Development

Difference between Economic Growth and Economic Development
Economic Growth	Economic Development
Economic growth alludes to the expansion in the money-related development of a country in a specific period.	Economic development alludes to the general progress of the lifestyle in a country, which also incorporates economic development.
The concept of economic growth is narrower compared to economic development.	The span of the concept of economic development is broad.
Economic growth is a single-dimensional or uni-dimensional approach because its prime focus is on the nation’s economic growth.	Economic development is a multi-dimensional approach as it focuses on the income of the country as well as the quality of life of its citizens.
It is measured using the Quantitative method.	It is measured using quantitative and qualitative methods.
It applies to developed economies.	It applies to developing economies.
It is a short-term process.	It is a long-term process.
Example: GDP, GNP	Example: HDI, per capita Income, industrial development
Economic growth doesn’t require government intervention as it is an automatic process.	Economic development requires government intervention because the government forms all the developmental policies of a nation.

Economic Growth and Economic Development

Economic growth is the process through which a nation’s actual national and per capita income increases over an extended period. Economic development is described as a consistent increase in society’s material well-being.

• A country’s net national product will eventually increase due to economic development, which is a long chain of interrelated adjustments to fundamental determinants of supply and demand.
• It encompasses more than just economic expansion.

What is Economic Growth?

For economic studies and policymaking, economic growth and economic development are crucial. Without growth, development is impossible. Economic growth will re-accelerate growth and eventually involve a bigger populace in development if it is used effectively.

• Similarly, rapid growth coupled with poor development causes growth to slow down.
• Economic Growth focus on the production of goods and services.
• It does not allocate fair and equal capital among individuals.

What is Economic Development?

Economic Development, which is defined as an increase in an economy’s or nation’s economic riches for the benefit of its citizens, is frequently contrasted with economic growth.

• It should be highlighted that while economic growth is a requirement for economic development, it is not the sole.
• Economic Development concentrates on the dispersal of resources.
• It focuses on the equivalent distribution of capital among individuals and improves the conditions of the underprivileged.

Conclusion:

Key Difference between Economic Growth and Economic Development

The key Difference between Economic Growth and Economic Development is that Economic Growth refers to a boost in the actual output of goods and services in the country. In contrast, Economic Development indicates transformations in earnings, savings and investment along with developed changes in the socioeconomic structure of a country.

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