Economic growth is the main agenda for all the countries whether they are developing countries or developed countries around the world. To enhance economic growth, the main focus is to expand the Gross National product or even it can be achieved by increasing the productivity for a certain economic region. The two things always come together, that is, if productivity is more, then quality of living will also be good. Certain social problems like poverty unemployment etc. are present in some countries and these can be rectified by economic growth.
There are variables such as interest rates, employment and inflation and these are related with microeconomic and macroeconomic growth. These factors can be the future of national economic growth or failure. Cruel Poverty can be maintained with the help of growth policies adopted by countries or nation and these are expansion biased.
Due to liberalism in the trade, mobility in the capital worldwide and economic strength of the multinational companies compromise with the national economic interests. They have allowed the multinational to do activities across the boundaries i.e. the activities related to the transfer of the resources. The pressure of globalization occur when there will increase in the mobility of the people and also there will be progress in the communication system globally which bring change in the national identity. The mobility causes the problem of facing the new arrivals in the country which may also cause problem for the native people. One of a critical part in monetary advancement is a judicious conversion scale administration.
The two fundamental components will bring the monitory development:
Total interest expansion
Total supply expansion
Increment in Demand and Supply can helps in Lower loan fees which diminish the expense of obtaining thus supports spending and speculation, the increase in the wages will increase the disposal income which further leads to consumers to spend more. The increase in the quantity of export, governmental spending will be increased, increase confidence of the customers, the disposable income of the consumers will be increased when there will be decrease in the tax, the price of the houses will be increased, the encouragement to the home owners to spend more will create positive wealth effect and etc.
Empowering the people to live with higher standards will show financial development which will make the way that will be able to bear the costs which is required to live a normal life by fulfilling all the necessary things, for example, sustenance, and haven. There will be enhanced expectations to fulfil the comforts of life when there will be financial development in the lives of the people. Financial Growth which includes expanded yield causes outside reactions, such, as expanded contamination. The genuine issue will get rise if there will be unnatural change in the weather.
In concluding all of the above facts I came to the conclusion that the negative impacts talked about then again incorporate inventive obliteration, regular social pressure, wellbeing challenges, increment in pay disparity, expanded contamination and a consumption of common assets. The economic developments is the thing which each country wanted to achieve which will help in raising the life standards of all the people concerned with that nation. Every country need the balance between their Demands and supply for better Economic Growth as demand and supply are the most important pillars of the world and countries growth.