How does the GDP growth rate impact the economy of a country?
Explain the relationship between GDP growth rate and overall economic performance.
- A higher GDP growth rate indicates that the economy is expanding and producing more goods and services, leading to increased employment opportunities.
- It signifies increased consumer spending, business investments, and overall economic confidence.
- A strong GDP growth rate can attract foreign investments and boost exports, contributing to a healthier trade balance.
- It allows the government to collect more tax revenue, which can be used for investments in infrastructure, healthcare, education, and other public services.
- Conversely, a low or negative GDP growth rate can result in job losses, reduced consumer spending, and potential economic downturns like recessions.
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18 hours ago