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Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
Industrial output fails to keep pace with agricultural output.
Agricultural output fails to keep pace with industrial output.
Poverty and unemployment increase.
Imports grow faster than exports.
Economic growth does not necessarily connote economic development which is a holistic concept representing the well-being of the population rather than only increased income. As the question clearly mentions effects on development, we must take into account impact of poverty and unemployment of economic growth despite having good parameters of progress in growth, per capita income etc.
By: Vishal ProfileResourcesReport error
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