What's the difference between economic growth and economic development?

Economic growth refers to an increase in a country's output or GDP, while economic development involves improvements in living standards, education, and health.

Economic growth and economic development are two terms that are often used interchangeably, but they have distinct meanings in the field of economics. Economic growth is a narrower concept than economic development. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources, an increase in the quantity of resources, or technological advancements. This is often measured by the rate of change in Gross Domestic Product (GDP).

On the other hand, economic development is a broader concept. It involves an improvement in the quality of life and living standards, economic health, and a sustainable growth. Economic development can also be described as the process by which the overall health, well-being, and academic level the general population improves. It involves the reduction of relative and absolute poverty, decreasing infant mortality, increasing employment opportunities, and improving education standards.

While economic growth can lead to economic development by providing the capital for public services and infrastructure, it is possible to have economic growth without economic development. For example, if a country's GDP grows rapidly, but the wealth is concentrated in the hands of a small elite, the majority of the population may not see any significant improvement in their standard of living. This is often seen in countries rich in natural resources, such as oil, where the wealth generated by this resource does not filter down to the general population.

In contrast, economic development is more focused on sustainable growth, ensuring that future generations can also enjoy a similar or better standard of living. This involves improving the quality of education, healthcare, and job opportunities, as well as ensuring a clean and safe environment. Therefore, while economic growth is an important measure of the success of an economy, it is not the only one. Economic development, with its broader and more inclusive view of economic progress, is also crucial.