Courses : Business Environment Lecturer :Richman Alexander Semester : 4thSemester, 2022/2023 Session Economic growth Economic growth refers to changes that occur in the total value of goods and services produced in a country or region within a certain period of time. Economic growth is measured using indicators such as Gross Domestic Product (GDP), which is the market value of all goods and services produced by a country in a certain period of time. Economic growth indicates a positive change in a country's ability to produce goods and services over time. This increase in production usually reflects increased investment, higher levels of consumption, innovation, and technological advances. Strong economic growth is considered important because it can provide broad economic benefits, such as increased employment, higher incomes, improved living standards, and social progress. Economic growth also plays an important role in reducing poverty and social inequality. However, it is important to note that economic growth can also have negative impacts, such as pressure on natural resources, environmental damage, and unequal distribution of wealth. Therefore, it is important to achieve sustainable and inclusive economic growth that pays attention to social and environmental aspects. In continuing the discussion on economic growth, there are several factors that can affect a country's level of economic growth: 1. Investment: A high level of investment can promote economic growth. Investments made in infrastructure, technology, research and development, and human capital can increase a country's productivity and productive capacity. 2. Consumption: Strong domestic consumption also plays an important role in driving economic growth. A high level of consumption means that there is a strong demand for goods and services, which can drive production and growth in the economic sector. 3. International trade: Engaging in international trade can provide opportunities for economic growth. Exports of goods and services increase national income and create jobs, while imports allow access to the goods and technology needed to support growth. 4. Innovation and technology: Advances in innovation and technology play an important role in driving economic growth. Innovation can increase production efficiency, generate new goods and services, and create new industries that drive growth. 5. Government policies: Appropriate economic policies from the government can support economic growth. Sound fiscal and monetary policies, strong legal protection, adequate regulation, and support for strategic sectors can create an environment conducive to investment and growth. 6. Financial stability: The stability of the financial sector is an important factor in supporting economic growth. Financial instability or crises can disrupt credit flows, investments, and overall economic activity. Therefore, policies that promote financial stability, effective supervision of financial institutions, and sound risk management are essential to support stable economic growth. 7. Quality of institutions and good governance: Strong institutions and good governance are important foundations for sustainable economic growth. A fair legal system, transparency, effective control of corruption and legal certainty give investors confidence and create a conducive business environment. 8. Workforce and human capacity: The availability of a skilled and productive workforce and investment in education, training and human capacity development are critical in driving economic growth. A qualified and productive workforce can increase a country's productivity, innovation and competitiveness on a global scale. 9. Infrastructure: Adequate infrastructure in the form of transportation networks, energy, telecommunications, and other public facilities supports economic growth. Good infrastructure can improve connectivity, efficiency and accessibility in the production and distribution of goods and services. 10. Political stability and security: Political stability and security are important factors in creating a conducive investment climate and promoting economic growth. Political uncertainty, armed conflict or geopolitical tensions can hinder investment, trade and economic growth. Economic growth can also be measured inclusively, namely by paying attention to aspects of equality and social inclusion. Inclusive economic growth includes fair distribution of economic benefits to all people, reducing social inequalities, and paying attention to environmental protection to maintain long-term sustainability. It is important to note that economic growth is not the only indicator of economic success. Other aspects such as human development, environmental sustainability and social welfare also need to be considered in efforts to achieve sustainable and inclusive economic development. Overall, economic growth involves complex interactions between various factors, and each country has different characteristics and challenges in developing its economic growth. It is important to pay attention to these factors and implement appropriate economic policies to achieve sustainable, inclusive and balanced economic growth. In conclusion, economic growth refers to positive changes in the total value of a country's production of goods and services within a certain period of time. Strong economic growth is considered important because it can provide broad economic benefits such as increased employment, higher incomes, improved living standards, and social progress. To achieve sustainable and inclusive economic growth, there are several influencing factors. These factors include high levels of investment, strong domestic consumption, involvement in international trade, technological innovation and advancement, appropriate government policies, financial stability, quality institutions and good governance, skilled workforce, adequate infrastructure, political stability and security. It is important to understand that economic growth is not the only measure of economic success. Other aspects such as human development, environmental sustainability and social welfare also need attention. Inclusive, just and sustainable economic growth is an expected goal in an effort to achieve balanced and sustainable economic progress for society.