Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Definition of Economic Growth Economic growth is usually measured as the percentage change in gross domestic product (GDP) over two time periods, such as annually or quarterly. Economic growth is an increase in the total output value of a certain country or region during a certain period of time. Increased productivity, greater investment, increased international trade, increased public consumption, and more efficient and sophisticated technological innovations can lead to an increase in GDP. Considered important, good economic growth can generate many social and economic benefits, such as increasing employment, lowering poverty rates, increasing people's incomes, and providing more resources for public services such as education and health. One important indicator for evaluating the economic health of a country or region is economic growth. Positive growth indicates an increase in the production of goods and services, which has a positive impact on people's welfare. Economic growth can also generate additional benefits, such as: 1. Increase employment: High economic growth can lead to more job opportunities as companies will increase production and need more labour. 2. Reducing poverty rates: People's incomes tend to increase in environments with good economic growth, which can reduce poverty rates. 3. Increase people's income: Positive economic growth can increase people's income, improve people's welfare. 4. Provide resources for public services: The government can have more resources to provide public services such as health, education, and infrastructure in areas with positive economic growth. However, high economic growth can also cause problems such as economic inequality and inflation. Therefore, appropriate policies are needed to ensure that the economic growth that occurs can benefit society as a whole. Continuous efforts to increase productivity and efficiency are needed to achieve sustainable economic growth. Some of the components that may impact economic growth include: 1. Investment: Larger investment from companies or governments can accelerate economic growth by increasing production and creating new jobs. 2. Technological innovation: Technological innovation can accelerate economic growth by increasing productivity and efficiency. 3. International trade: International trade can increase export production in new markets, which in turn suppresses economic growth. However, economic growth that is too fast can cause problems such as social injustice, inflation, and budget deficits. Therefore, the government must establish appropriate policies to optimize economic growth while considering other factors such as social and environmental justice. In addition to the factors mentioned above, there are also other factors that can affect economic growth, such as For economic growth, political stability is very important. Investors and business people feel safer to invest and expand their business in a stable place. Unstable conditions, such as political conflict or riots, can disrupt business and stop economic growth. Good financial policies, such as monetary and fiscal policies, can also accelerate economic growth. An efficient financial system allows companies to obtain the necessary capital to expand their business. A good place for business is also important. Business-friendly policies, clear regulations, effective bureaucracy and adequate legal protection are all elements that make up this environment. Business people can easily start and expand their business in this environment, which increases investment and accelerates economic growth. In addition, sustainable economic growth must consider sustainability and the environment. Economic growth that is too fast can cause environmental damage and excessive exploitation of natural resources. As a result, sustainability must be part of economic policy and economic growth must be directed towards development that is sustainable and environmentally friendly.