Measurement of Economic Growth And Development - SS3 Economics Lesson Note
Measurement of economic growth and development involves using various indicators to assess the performance of an economy over a period of time. These indicators can be broadly categorized into two types: economic growth indicators and development indicators.
Economic growth indicators
Economic growth indicators measure changes in the size of an economy over time. These indicators include Gross Domestic Product (GDP), Gross National Product (GNP), Gross National Income (GNI), and Gross Domestic Product Per Capita (GDP Per Capita).
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GDP is the most widely used indicator of economic growth and it measures the total value of all goods and services produced within a country's borders.
GNP measures the value of all goods and services produced by a country's citizens, both domestically and abroad.
GNI measures the income earned by a country's citizens, both domestically and abroad, and is often used as a measure of a country's economic welfare.
GDP Per Capita measures the average income of a country's citizens and is calculated by dividing the total income by the population of the country.
Development indicators
Development indicators, on the other hand, focus on measuring the overall well-being of a country's citizens. These indicators include literacy rate, life expectancy, infant mortality rate, access to healthcare and education, and poverty rate. These indicators are important in measuring the social and economic development of a country, as they give a more comprehensive picture of the overall well-being of its citizens.
The implementation of both forms of indicators in checking a country's health and progress over time cannot be overemphasized. By using a combination of economic growth and development indicators, policymakers can better understand the strengths and weaknesses of their country's economy and design policies that promote sustainable economic growth and development while improving the well-being of their citizens.