Previously you came to know about the potential of economic growth and how it helps in increasing the income of any nation. It takes an average human life span to get their standard of living as twice the percentage of the original. This is only possible when growth rate percentage is 1%. But standard of living for any country will become double if every decade witnessed a certain growth rate percentage- 7%.
This aspect, in general, presents few questions in front of us. Few of them are:
- What is the speed with which other economies are growing?
- What is the pace with which our economy is growing?
- Are poor / developing countries able to catch up with the rich nations?
- If there are gaps between the 2, did this gap remain same or did it widen?
Answers to all of these are expressed in next chapter.