Economic growth is the primary aim of economic management which occurs when the economy produces more goods and services in order to achieve higher living standards over a period of time. It is measured by the annual rate of change in real Gross Domestic Product (GDP) i.e. the percentage increase in the value of goods and services produced in an economy over a period of one year, adjusted for the rate of inflation. GDP measures the economy's performance by creating jobs, rasing living standards, and creating opportunities for the development of a nation. However, higher growth rates can also cause problems including inflationary pressures, a surge in imports, environmental degradation and greater income inequality and social division.

Generally, the effects of economic growth are positive as an increase in real GDP means an increase in output, there are more goods and services available to satisfy the needs...