- GDP (Economic Growth):
- Measures total market value of goods and services produced.
- It is a necessary condition for socio-economic development.
- Higher GDP can lead to higher per capita income, better services, and poverty reduction.
- Gini Coefficient:
- Measures income distribution.
- A higher Gini coefficient indicates higher income inequality.
- High inequality can adversely exacerbate social problems and hinder overall development.
- Relationship: While GDP growth is crucial, the Gini coefficient shows how equitably the benefits of that growth are distributed. Both influence socio-economic outcomes.