It is evident from the different region and countries that are active and operating all over the world that economic growth is not equally distributed amongst all nations. Some countries depict an increasing rate of economic growth like in China, India and Singapore, while others are facing recession like Europe and America. Moreover the nature of the economic growth is also different ranging from short term economic growth to sustainable long term economic growth. The following paper provides information on the matter of economic growth and why it is different for different countries in the world.
The major sources of growth which can result in a successful macroeconomic environment in a country pertain to growth in the productivity and the operations taking place in the country. Private ownership of industries and businesses motivates people to be more successful at them and perform better resulting in exponential economic growth in the region. Aside from this the policies favoring freedom to exchange enable the business to interact and trade freely resulting in more economic activity. Competitive markets reduce inefficiencies and provide continuous improvement for the industry and the economy.