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Economic growth

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Question 5

Table 1: Gross Fixed Capital Formation (Investment) and economic growth for selected economies

CountryInvestment (% of GDP)Annual real GDP growth rate (%)
Singapore324.8
South Korea293.6
Germany221.8
United Kingdom170.9
Italy150.4

Using Table 1, explain the relationship between Gross Fixed Capital Formation (Investment as a % of GDP) and the annual real GDP growth rate.

[4]

Economic growth Questions

  1. A Level
  2. /Economics
  3. /Economic growth