Economic development is essential for long-term economic productivity. Consequently, growth trends point out the Gross National Product (GNP) and growth rate measures that require a set of data collected over years.
Some of the factors that affect the process of economic development:
1- Changes in real exchange rate.
2- Cyclical fluctuations in Gross National Product (GNP) and foreign trade.
3- Financial instability, such as unsustainable credit boom and decline in savings.
4- Fluctuation in world prices for basic imports and exports.
5- Armed conflicts and political instability.
6- Natural disasters and other destabilizing events.
7- Drastic changes or mutations in the technology industry.