Economic growth, a principal driver for sustainable development

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Economic growth, a principal driver for sustainable development

sustainable economic growth

To promote inclusive and sustainable economic growth, employment and decent work for all.

How many people are unemployed?

Global unemployment Increased from 170 million people in 2007 to nearly 202 million in 2012, of which about 75 million are young women and men.

According to the International Labor Organization (ILO), more than 204 million people were unemployed as of 2015

How many jobs are needed?

470 million jobs are needed globally for new entrants to the labour market between 2016 and 2030, just to keep up with the growth of the global working age population. That’s around 30 million per year.

global - GDP - growth - sustainable economic growth

What is Economic Growth?

Economic growth is a principal driver of sustainable development. It lead to new and better employment opportunities as it leads to better and more resources for education, health, personal consumption, water and energy infrastructure and transport. Sustaining high real economic growth is not easy, however, and only a few of the least developed countries have consistently closed in on the 7% average annual growth target for real GDP.

Moreover, economic growth is not necessarily sustainable when countries are depleting their natural resources for the sake of economic growth and thus shifting the burden of environmental degradation and damage to future generations.

The average annual growth rate of real gross domestic product (GDP) per capita expanded from 0.9% over the period 2005-2009 to 1.6% in 2010-2015. Real GDP growth in the least developed countries (LDCs) averaged 4.9% in 2010-2015, short of the target of at least 7% annually.

Globally, real GDP per capita grew, on average, by 1.6 per cent in 2010-2015 in LDCs’. That is almost double the rate of 0.9 per cent in 2005 - 2009 and slightly below the 1.8 per cent rate achieved in 2000 2004. Real GDP per capita in Central and Southern Asia and Eastern and South-Eastern Asia grew most rapidly from 2010 to 2015(4.6 per cent and 4.0 per cent, respectively). In contrast, real GDP per capita growth slowed in the least developed countries (LDCs), landlocked developing countries and small island developing States to an average of 2.5, 3.4 and 2.2 per cent, respectively, in 2010-2015.

What can we do to fix these issues?

Providing youth the best opportunity to transition to a decent job calls for investing in education and training of the highest possible quality, providing youth with skills that match labour market demands, giving them access to social protection and basic services regardless of their contract type, as well as levelling the playing field so that all aspiring youth can attain productive employment regardless of their gender, income level or socio-economic background.

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