FACTORS INFLUENCING ECONOMIC GROWTH

Human Capital Human capital is everything and anything that helps people be more productive like education, training, skills, and health When investment is made in human capital, GDP goes up, and when this goes up, people enjoy a higher standard of living Russia is behind the UK & Germany in GDP due to Soviet era practices. There was no incentive to work hard because jobs and income were guaranteed. Greater productivity did not result in earning more money.  

Physical Capital Investment is needed in this area for business to be most productive and to stay competitive. Physical capital includes factories, machines, technology, buildings, and property Russia is behind the UK & Germany in investing in physical capital due to Soviet era practices. The Soviets spent most of their money on the arms race, so lots of things in modern day Russia need to be fixed or replaced

Natural Resources A country with more natural resources will be better off than a country with less In much of Europe the non-renewable energy resources have been used up Russia is better off than the UK or Germany as it exports oil and natural gas, but needs to develop other resources as these will eventually run out

Entrepreneurship Entrepreneurship is needed to keep economies healthy and growing. They cause a rise in GDP by putting other people to work. As they create businesses, they create jobs and the more people working, the greater will be the value of goods and services produced.