There are significant differences between economic growth and economic development.The term "economic growth" refers to an increase (or growth) in real national income or product expressed usually as per capita income. National income or product itself is commonly expressed in terms of a measure of the aggregate output of the economy called gross national product (GNP). Per capita income then is simply gross national product divided by the population of the country. When the GNP of a nation rises, whatever the means of achieving the outcome, economists refer to it as economic growth. The term "economic development," on the other hand, implies much more when used in relation to a country or an entire economy. It typically refers to improvements in a variety of indicators, such as literacy rates and life expectancy, and it implies a reduction in poverty. (Source Wikipedia: June 10, 2007 http://en.wikipedia.org/wiki/Economic_development)