Question

Why do you think it is difficult for high-income countries to achieve high growth rates?

Short answer

Because of limited scope for growth

Step-by-step solution

Step 1. Introduction

Economic growth refers to a sustained increase in the output level from one period to another. It is generally measured through Gross domestic product or GDP. GNP, real GDP, etc. are other measures of economic growth.

Step 2. Explanation

High-income countries have reached a position where they have already benefited from innovation and technological upgradation. Their standard of living has improved to a great extent. All these changes have left little scope for growth. To achieve higher growth rates, they have to continually push for improvement in the workforce and technological development.