How it affects regular citizens?

Mudassir Ali
Feb 01, 2020 03:04 PM 0 Answers
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Mudassir Ali
- Feb 01, 2020 03:04 PM

While there is no direct effect of GDP on personal wealth (ie. the GDP growth doesn’t always mean increase in wages of a given person), it actually impacts all citizens in the long run. Investors usually look at GDP to decide wether to invest in the economy and compare countries’ growth rates to determine which to invest in. Thus, increase in GDP usually means that economy is growing, and more investments should be poured into it. More investments usually means more jobs, and more jobs usually means higher living standards. Moreover, the GDP affects interest rates, which are extremely important, especially for those wishing to lock themselves in a mortgage. Therefore, every resident should be interested in where his country’s economy stands to understand better his personal financial prospectives.

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