Lot more interesting detail can be read here. Keeping this in consideration, what are the advantages of economic growth?
Economic growth creates higher tax revenues, and there is less need to spend money on benefits such as unemployment benefit. Therefore economic growth helps to reduce government borrowing. Economic growth also plays a role in reducing debt to GDP ratios.
Furthermore, what are the effects of economic growth? One of the biggest impacts of long-term growth of a country is that it has a positive impact on national income and the level of employment, which increases the standard of living. As the country's GDP is increasing, it is more productive which leads to more people being employed.
Furthermore, why is growing economy important?
To improve its standard of living, a society's real GDP must grow faster than its population is growing. Second, a growing economy puts a country in a position to meet new needs and resolve socioeconomic problems. To provide more goods and services for the same size population, the economy must grow.
What are the main sources of economic growth?
Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.
