What is Economic Growth?

Economic Growth is increase in the capacity of an economy to produce goods and services – in one period, as compared to other period. In simplest terms, it is the rate of change at which an economy is growing year after year or percentage change in quantifiable terms such as GDP, production, per capita income, spending etc. after their adjustment with inflation; population growth etc. Since it measured only quantifiable terms, and ignores the qualitative aspects of the life of people, it is considered to be a narrow concept and is considered to be only one component of measuring Economic Development, which counts both quantitative and qualitative aspects of economy.