Economic growth is a term that many people are familiar with.
It has been around for centuries, and governments have started to take it seriously.
As the standard of living increases in countries across the globe.
However, not everyone understands what economic growth refers to or how it impacts their lives.
In this blog post, we will explore the idea of economic growth by looking at several examples from history and examining how they might look if extrapolated into 20 years’ time.
Economic Growth: Definitions Economic growth generally refers to an increase in gross domestic product (GDP).
Which represents all goods and services produced within a country during one year.
When GDP rises over time, this means there is more production happening domestically so towns can develop richer economies through the growth of jobs.
Economic Growth: Historical Examples Economic growth in the United States has steadily increased over time as illustrated by its GDP per capita, which is a measure of country income divided by population size.
The U.S. experienced its first economic downturn during the Great Depression and took many years to recover from that.
But since then it has seen exponential growth year after year .
With some exceptions such as 2008-2009 when there was a global financial crisis caused by banks running out of money .
Due to high levels of mortgage defaults on home loans due to subprime mortgages .
In recent history (since 1980), it’s worth noting that China’s annual GDP .
Grew at an average rate of around 14% for more than thirty years before slowing down.