There are traditional signs that reveal if a country’s economy is flourishing. Some examples can be seen in the results of several domestic economic activities such as in the goods and services that a nation produces annually (GDP), their overall economic output that includes revenues from foreign investments (GNP), their yearly increase in their GDP and GNP, and many more.
While those indicators mentioned above can easily describe the state of a country’s economic prowess, the 21st century presents multi-layered challenges and victories that either contribute or hinder a country’s economic progress as a whole.
In developing countries, for example, there are several factors that can affect economic growth. These factors offer a checklist of goals that they look up to in order to achieve a more developed and progressive economy: improvements in the levels of infrastructure, the rate of labor mobility, and most importantly, the volume of foreign and direct investments.
Additionally, technological advancements should be recognized as a major indicator of economic progress, and this is quite true especially for developing countries. Technology, for one, enables them to be globally competitive and emerge as equally capable players in the world economy.
However, according to experts, it’s important to recognize the huge difference between economic growth and economic development. Economic growth can be measured through the GDP, GNP and other statistics that describe the country’s overall economic performance. However, these numbers do not fully consider other aspects such as a country’s literacy rate, environmental quality, life expectancy, social justice, and freedom – the major indicators that fully describe “economic development”.