What does «crecimiento económico insostenible» mean in Spanish?
- Unsustainable economic growth is a theoretical situation first proposed by Jagdish Bhagwati, in 1958, in which economic growth could make a country worse off than before the growth. If growth is largely export-led, it could lead to a fall in the terms of trade of the exporting country. In rare circumstances, this fall in the terms of trade may be so large as to outweigh the benefits of growth. If so, this situation would make a country worse off after growth than before. This result is only valid if the growing country is able to influence world prices.