Basis for

Economic Growth Economic Development

Comparison
Economic Growth is the Economic Development involves rise in the
positive change in the real level of production in an economy along with
Meaning
output of the country in a the advancement of technology, improvement
particular span of time. in living standards and so on.
Concept Narrow Broad
Increase in the indicators like Improvement in life expectancy rate, infant
Scope
GDP, per capita income etc. mortality rate, literacy rate and poverty rates.
Term Short term process Long term process
Applicable to Developed Economies Developing Economies
How it can be Upward movement in national
Upward movement in real national income.
measured? income.
Which kind of
changes are Quantitative changes Qualitative and quantitative changes
expected?
Type of process Automatic Manual
When it arises? In a certain period of time. Continuous process.

Key Differences between Economic Growth and Economic

Development
The fundamental differences between economic growth and development are explained in the
points given below:

1. Economic growth is the positive change in the real output of the country in a particular
span of time economy. Economic Development involves a rise in the level of production
in an economy along with the advancement of technology, improvement in living
standards and so on.
2. Economic growth is one of the features of economic development.
3. Economic growth is an automatic process. Unlike economic development, which is the
outcome of planned and result-oriented activities.
4. Economic growth enables an increase in the indicators like GDP, per capita income, etc.
On the other hand, economic development enables improvement in the life expectancy
rate, infant mortality rate, literacy rate and poverty rates.
5. Economic growth can be measured when there is a positive change in the national
income, whereas economic development can be seen when there is an increase in real
national income.
6. Economic growth is a short-term process which takes into account yearly growth of the
economy. But if we talk about economic development it is a long term process.
7. Economic Growth applies to developed economies to gauge the quality of life, but as it is
an essential condition for the development, it applies to developing countries also. In
contrast to, economic development applies to developing countries to measure progress.
8. Economic Growth results in quantitative changes, but economic development brings both
quantitative and qualitative changes.
9. Economic growth can be measured in a particular period. As opposed to economic
development is a continuous process so that it can be seen in the long run.