Economic Growth and Sustainability

Economic growth is calculated as the annual percentage change in real GDP or the annual change in real per capita GDP.

Growth in real GDP measures how rapidly the total economy is expanding.

Per capita GDP, defined as real GDP divided by population, determines the standard of living in each country and the ability of the average person to buy goods and services.

The sustainable rate of economic growth is measured by the rate of increase in the economy’s productive capacity or potential GDP.