What is the relationship between political stability and economic growth? 🔊
The relationship between political stability and economic growth is reciprocal and complex. Political stability creates an environment conducive to investment and economic development, as businesses seek predictability and security. Conversely, sustained economic growth can bolster political stability by improving living standards and reducing discontent. However, instability can deter investments, triggering economic decline. Moreover, the interplay between governance quality, policy decisions, and economic performance is critical in determining how effectively societies can adapt to changes and maintain resilience. Thus, fostering political stability is vital for sustainable economic progress.


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