Balanced Growth  

Definition of balanaced Growth: Balanced Growth refers to a specific type of economic growth that is sustainable in the long term. Balanced growth is opposed to the boom and bust nature of economic cycles.

Features of Balanaced Growth

  1. Economic growth close to the long run trend rate of growth (in the UK this is about 2.4% a year)
  2. Low inflation
  3. Balanced between different sectors of the economy e.g. both export and domestic consumption should be rising
  4. Balanced between different regions of the country. e.g. China's breakneck growth is focused on the South
  5. Balance between consumption and investment. eg. growth in UK and US has often been focused on consumer spending leading to low savings ratios and high current account deficits
  6. Concern for the environment. e.g. balanced growth should use mix of renewable resources as well as non renewable growth.

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