We know that sustainability means to preserve the natural resources for fore coming generations. But economic sustainability being a different concept generally means the capacity of an economy to help a specified degree of commercial production to an unlimited extent.
No nation has a GDP (Gross Domestic Product) development target, not exactly about two percent, except for a while recouping from a downturn. In this way, the actual meaning of economic sustainability is the consistent development in total national GDP of at least about two percent every year.
Importance of sustainable Economic Growth
It is of extreme importance to the economy as it endeavors to fulfill the necessities of people yet in a way that sustains the natural assets and environment for the coming generations. As we know that economies operate in the ecosystem, it is impossible to separate it from the ecosystem. In simple words, the existence of the economy is based on a strong ecosystem.
It provides the important variables for economic sustainability that boost up the natural growth generally based on labor, natural resources, capital, and land. Economic Sustainable Growth aims to deal with the existing natural resources so that they won’t be exhausted and will stay accessible for people in the future.
Business and economic sustainability
Every business needs a strong economic base for its development and promotion in the market. To develop a strong economic base for successful business in a state we need to;
- utilize present resources in a better way
- develop skills
- Promote and encourage stability
- Provide services that meet the needs of consumers and their issues while limiting their effect on nature.
According to the economic sustainability researchers, the economy is an important factor for successful business in present times, with maximum investments to prosper and innovate. Future employment depends on the development of business and economy.
Important factors for economic growth
Though it is not that easy to conserve the economic resources for making innovations and developments on a large scale, there are some factors or indicators of economic sustainability on which the economy’s growth relies.
The basic economic indicator is the GDP rate as it speaks to the complete estimate of goods and services that a country delivers every year. The economic development also includes other crucial indicators such as
- Public investments
- Private resources
- Social funding
- Debts on Government due to borrowing from developed states.
- Rate of productivity over Competitiveness
- Country’s Trade, particularly based on Import and Export.
Hence it is important to speed up the economic growth so that the environment stays preserved for the next generations. Economic sustainability development is the approach towards creating new opportunities for the people of the future, without giving any harm to nature or its resources.
What to do to preserve resources and power up economic growth?
To increase economic growth without putting the existing resources at the risk of depletion, we need to set and create strategies such as industrial construction that empower the concept of reducing the impact of industries on nature.
Economic sustainability in construction triggers the act of making structures and utilizing forms that are ecologically mindful and asset productive all through a structure’s life-cycle from siting to plan, development, activity, upkeep, redesign, and deconstruction.