Economic factors are elements that influence the economy and can affect individuals, businesses, and governments. These factors include things like inflation, unemployment rates, and interest rates. For example, when inflation rises, the cost of goods and services increases, which can impact how much people spend and save. Additionally, economic factors can shape the overall health of a country’s economy. Gross Domestic Product (GDP) is a key indicator that measures the total value of goods and services produced. A growing GDP often signals a strong economy, while a declining GDP may indicate economic troubles, affecting jobs and investments.