Activities which encompass demand that postulates production of goods and services which in turn influence supply are the backbone of an economy. A country’s economic actions dictate growth or failure which are dependent on her ability to sustain its local consumption and production. Allocation of resources in production determines the cost at which domestic economy grows which in turn affects per capita income. The future of an economy lies in its ability to utilize local resources and increase consumption of the same by its population which will indicate how developed its economic systems will become. The global economy is dependent on developed economies as well as emerging ones whereby opportunities lie in high numbers. Advanced economies will provide leverage for developing countries to harness their economic strategies and utilize the same. Some of the areas in which developing economies will require boosting include use of software application and information technology. Therefore, an economy relies on how vast scarce resources and innovation mesh for its growth.
Economic policies shape a country’s ability to produce on a large scale or expand their activities. Levels of taxation, money supply, and interest at domestic and global economic levels should favor financial performances. These essential pillars of an economy should enable the government to harness taxes and promote the production of both local and foreign investors. Global economy affects largely how developing economies grow due to alliances in trade and economic policies. Growth of an economy will depend on critical players in the economy to create systems that boost rather than create economic depression. Government interventions are essential and should focus on promoting local production and building economic arenas based on favorable domestic and global policies.
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