Constraints on Economic Growth
- Rapid population growth - reduces GDP per head.
- Lack of savings - emergence of a savings gap.
- Debt servicing
- Political instability - e.g. Nigeria
- Corruption - deters potential investors from investment projects.
- Declining commodity prices due to developments of alternatives.
- Low levels of foreign direct investment.
- Volatility of export prices.
- Credit markets may be poorly developed due to assymetric information.
- A lack of fully established property rights is a disincentive to invest.
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