why is economic growth important
Economic growth means a higher standard of living, provided population does not grow even faster. And if it does, then economic growth is even more important to maintain the current standard of living. Economic growth allows the lessening of poverty even without an outright redistribution of wealth. If population is growing at 2.5 percent a yearâand it is in some of the poorest nationsâthen a 2.5 percent growth rate of real GDP means no change in living standards. A 3.0 percent growth rate means a gradual rise in living standards.