The share of GDP devoted to investment was similar for Canad

The share of GDP devoted to investment was similar for Canada and South Africa over the period 1990-2010. However, South Africa had a 8 percent growth rate of average annual income, while Canada had only a 2.1 percent growth rate. Clearly explain this in writing and with a diagram.

Solution

South Africa has a better growth rate than canada as population larger and a bigger market due to consumption.Even if share of investment of GDP same South Africa has a better growth rate