What are the implications of political stability for economic growth? 🔊
The implications of political stability for economic growth are significant. A stable political environment promotes investor confidence, enabling sustained economic development and job creation. It reduces the risks associated with investment, as businesses seek assurance that their operations will not be disrupted by unrest or abrupt policy changes. Conversely, instability can deter investment, leading to economic stagnation or decline. Political stability encourages effective governance and the implementation of long-term economic strategies, facilitating a favorable climate for growth and development.
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