Economic growth is one of the basis a country or even an organization is said to be successful. This is why leaders are seeking all the ways to grow in economy. What are the factors for economic growth?
Inflation rate undoubtedly affects economic growth. Inflation in business refers to the prices of goods and commodities so if there is a low inflation rate, it would be helpful to consumers. Consumers will then be lightened in their spending budget. Low inflation rate will help the customers to have a lot more goods. This is also applicable to constructions commercially or non-commercially, it is not limited only to single individual.
Government spending is also one factor that affects the growth of economy. It is mandatory to pay taxes to the government. Not only the citizens but also foreigners who are coming in the country. With these accumulated amount of money and other funds, the government spend it in accordance to the need of the people and the country. If it is spent wisely, then good but if there is conspiracy and corruption, how detestable! The country will be in poverty, no growth economically.
Tourism and investment rate. It is not only from the taxes that a government could accumulate large sum of money but also from tourism and investments of other countries and locally. The more investments and tourism rate, the more income.
Physical capital. Even small businesses need capital. This is the main thing that needed to prepare and to be sustained in the first place. Without capital, how would it go well financially? Likewise, the bigger capital, the higher possibility to be stable financially. When financially stable, then it is growing economically.
A lot of factors affecting economic growth can be discussed. Mindset of leaders and unity of people can also be one. Without the mindset of a leader and unity of people, economy will never be in progress because in the first place, the one who is managing, the ones involved are the leaders and people.