The importance of economic growth

Improving the state budget

The impact of economic growth on improving the state budget is highlighted in the following:^[٣]

• Economic growth reduces the state budget deficit.
• This growth improves future financial prospects and reduces the future state budget deficit.

Improving goods and services in the country

The impact of economic growth on improving goods and services in the country is highlighted in the following:^[٣]

• The state can impose taxes on revenues.
• This process contributes to providing capital To improve the services provided by the state to citizens.
• These services include health care, education, social services, and public services.

Factors that help achieve economic growth

The most important factors that help achieve economic growth are the following:^[٤]

• Companies invest in the city, employing more workers.
• Tax cuts help return money to consumers, increasing spending.
• Improving the infrastructure of companies in order to encourage them to employ more workers, improve the efficiency of work, products, and services.

Challenges of economic growth

Here are the most important challenges facing economic growth:^[٥]

• labor force

The availability of productive labor is considered one of the most important reasons for the success of economic growth in the country. On the other hand, the high unemployment rate leads to the deterioration of the country’s economy and a significant decline in its productivity. On the other hand, weak or inexperienced labor in Various fields It leads to the deterioration of the economy of the sector in which you operate, and consequently the deterioration of the country's economy as a whole.

• poverty

Leads Non-existence Equality in the economic status of citizens leads to the deterioration of the economy, and the failure to involve all segments of society in the growth process leads to its failure in most cases and thus increases poverty rates.

• Sectors are out of service

Some sectors face disruption in their productivity and work as a result of some circumstances beyond their control. Some sectors may be disrupted as a result of epidemics, for example, and this leads to a decline in the rate of economic growth in countries.

• Loss of solutions in emergency situations

Some sectors may go bankrupt, or face circumstances that prevent them from providing income to workers, which leads to disruption of employees’ work, a decrease in their productivity, and consequently disruption of Economic growth, and some companies may be exposed Economic shocks, such that companies are unable to provide urgent solutions to deal with these problems, which leads to the deterioration of the country's economic situation in general.

the reviewer

1. ↑ “What is economic growth? And why is it so important?”, Our world in date, Retrieved 24/1/2022. Edited.
2. ^ ^{A for} “Economic Growth: Causes, Benefits, and Current Limits”, Cbpp, Retrieved 24/1/2022. Edited.
3. ^ ^{A for} “Why should I care about economic growth?”, Wider.unu, Retrieved 24/1/2022. Edited.
4. ↑ “What Are Ways Economic Growth Can Be Achieved?”, Invest pedia, Retrieved 24/1/2022. Edited.
5. ↑ “Examples of Economic Growth Challenges”, Hks.harvard, Retrieved 24/1/2022. Edited.