Economic Growth and Development from An Islamic Economic Perspective: A Literature-Based Conceptual Analysis

Abstract

Macro economics is a branch of economics that studies the economy as a whole, focusing on factors that affect the entire system such as economic growth, inflation, unemployment, and government policies. Macroeconomics has two basic ideas: economic development and growth. Gross Domestic Product (GDP) growth, which represents the entire production of a country, is the main indicator of economic growth. On the other hand, economic development encompasses more areas, including improving people's living standards, their quality of life, and their general well-being. This study explores the differences between economic growth and development, the factors that influence them, and the impact of economic policies on the two concepts. This article uses a Literature review approach that is appropriate to the subject of discussion. An analysis of the literature shows that sustainable economic growth can improve quality of life, but inclusive economic development requires policies that support fairer distribution, better access to basic services, and community empowerment. Policy recommendations to encourage inclusive and sustainable economic development are also presented in this study. Sharia economics is an economic system based on Islamic principles and sharia law. The goal is to create an economic system that is fair, balanced, and brings benefits to all of humanity, not just profit-oriented.