Understanding Economic Growth

Economic growth is defined as the percentage change in gross domestic product (GDP), reflecting the overall size of an economy through the value of goods and services produced annually. This metric is crucial as it is often used by politicians and researchers to assess living standards and possible public service funding. The discussion highlights the importance of pursuing sustainable and inclusive growth, acknowledging that GDP growth can correlate with improved public investment, such as in healthcare and education. Thus, it is imperative that the focus remains not solely on growth itself, but on the quality and sustainability of that growth to prevent ecological and social ramifications.