Importance And Importance Of Economic Growth

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Economic growth is important for a country as it allows business to grow and prosper. It cannot be turnaround in weeks or months and take years so all government would have policies in place to sustain economic growth. Generally countries which are rich has got high productivity and vice versa. Productivity is the key factor to economic growth. In order to be productive, we need to have access to resources, technology and a good environment.
Access to resources includes capital and natural. Physical capital for example machines and equipment is used to produce more goods in an hour. Human capital which includes education, training and health can make workers more productive which are all vital in promoting economic growth. Natural resources include land, oil, cattle etc.
In Singapore, one of the countries with highest Gross Domestic Product (GDP) per capita in the world has got literally no natural resources and yet it is still able to maintain a sustainable growth. Singapore’s GDP is at USD 307.85 billion at a
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It has a Free Trade Agreement with 20 regional and bilateral FTAs with 31 trading partners. It is helpful in assisting Singapore-based business strengthen cross border trade by eliminating or reducing import tariff rates thus giving access to services sector, easing investment rules, improving intellectual property regulations and opening government procurement opportunities. (, 2014) Singapore has labour laws to regulate fair conditions of employment for workers and stabilize labour management relations for employers. It also has a National Wages Council to ensure orderly wage increases, paving the way for strong tripartite cooperation. Tripartism and industrial peace has enabled companies to expand and workers to enjoy the fruits of economic growth like better
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