GDP (Gross Domestic

Product) Growth
 GDP Growth:
GDP (Gross Domestic Product) growth can be defined as
an increase in the capacity of an economy to produce
goods and services, compared from one period of time
to another. GDP growth can be measured in nominal
terms, which include inflation, or in real terms, which
are adjusted for inflation.
 How is GDP Growth Measured?

Production
GDP is the total
amount of final Average of
goods and services Income these three –
produced in one GDP (A)
year with in a
country.
Expenditure
04 Factors of GDP Growth

• Natural Resources

• Human Capital

• Capital Goods

• Entrepreneurship
Natural resources: the basic factor effecting GDP growth is
quality & quantity of natural resources.

Human capital: An increase in investment in human capital can

improve the quality of labour force. This would result in an increase in
skills, abilities & trainings
Capital Goods: Increase in Capital Goods can result in more
factories, office buildings, or high-tech medical equipment. Producing
more goods for sale in a more quicker and efficient way leads to economic
growth and greater profit.

Entrepreneurship: They bring together natural, human and capital

resources to produce goods and services by taking high risks with their
business innovations to fill the market gapes.