Economic growth is an increase in the national income or per capita output over a period. It is a sign of quantitative growth in the country. On the other hand, economic development is a process where the real per capita income of a country increases over a period with a decrease in poverty ratio, unemployment and income inequality.
Differences between economic growth and economic development
The main differences between economic growth and economic development are
| Economic Growth | Economic Development |
|---|---|
| Economic growth has a single dimension | Economic development is multi-dimensional. |
| Economic growth reflects only quantitative changes | Economic development shows both quantitative and qualitative changes. |
| Economic growth shows the change in the output | Economic development shows changes in output along with technology and institutional arrangements. |
| Economic growth is spontaneous | Economic development is either regulated or controlled. |
| Economic growth is possible without the development | Economic development is not possible without growth |
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