Some differences can be traced to such inherent factors as climate and geography. At times people living near navigation routes or in temperate climates have fared better than people living far away from coastlines or in frigid climates. Some analysts also argue that culture plays a role in growth. While inherent traits are responsible for some differences in economic growth, government and central bank policies also play a role. Policies affecting access to technology, sound money and banking practices, and prudent taxing and spending can improve or stifle economic growth.
Economic growth is reflected by an overall improvement in the quality of life in a given country.
This may include better health care, a cleaner environment and more freedom in terms of choosing work and leisure activities. During times of economic growth, the overall wealth of a country increases, as do the variety and abundance of goods and services. Economic growth is not easy to measure. When the Federal Reserve gauges the level of economic growth in the United States, it considers many forms of data and comments from businesses and consumers. Economists track real GDP per capita over time to compare growth among countries and the effects of various factors of economic growth.