Economic growth refers to an increase in a country's production capacity to produce goods and services. A country experiences economic growth when the value of all final goods and services produced, as measured by GDP, increases over time. GDP growth occurs when a country's productive factors like raw materials, labor, technology, and capital investments increase, allowing for more output to be produced within a country's borders in a given period.

1. Economic Growth
What is economic growth?

2. Economic Growth = An increase in a country's
production capacity to produce goods and
services

3. What do we use to produce a car?
1. Raw material
2. Labour
3. Technology
4. Capital
What will happens to our production
capacity if we have more of these factors?

4. What is the value of all these goods?
R80 000 R90 000 R100 0000

5. What is GDP ?
• GDP = is the value of all the final goods and services produced within
the borders of a country in a given period of time.
• We use GDP to measure economic growth
• If we produce more goods and services , what happens to the value of
our country’s GDP?

6. There are several factors that affect economic
growth
1. The discovery of new raw material
2. Increased labour productivity
3. Improvements in technology
4. Capital investments

7. Discovery of new Raw material

8. Increased labour productivity

9. Improvements in technology

10. Capital investments