Health Of The Economy And Its Measuring Indicators

Abstract

Health of the economy is an integral part of development and it is determined by the socio – economic factors like education, employment, population growth, income and environment. If the economy is not healthy internally, then it will not be able to interact effectively externally. Economists use a variety of indicators to assess the performance of the economy at a given time. By looking at changes in GDP we can see whether the economy is growing. GDP doesn’t necessarily tell us much about the state of the economy. But change in GDP does. If GDP goes up, the economy is growing. If it goes down, the economy is contracting. To a certain extent, we can forecast future economic trends by analysing several leading economic indicators. Many different economic indicators are tracked in order to evaluate the health of economy in different ways or from different perspectives. To keep the economy growing strong, people must spend money on goods and services. A reduction in personal expenditures for things like food, clothing, appliances, automobiles, housing, and medical care could severely reduce GDP and weaken the economy. When an economic indicator is a statistic that will provides valuable information about the economy health. The majority of economic indicators are collected and released by government and/or non- profit groups. Thus, economists and businesspeople typically track only a select few that are most pertinent to their professional, financial and economic interests.