Broad-based economic growth is essential for long-term sustainable and socially-inclusive development. Economic growth creates the income opportunities needed to raise living standards and lift people out of poverty. The European Union’s actions aimed at encouraging economic growth in partner countries focus on support for:
- Private Sector Development
- Aid for Trade
- Regional Economic Integration
- Public Finance and Macroeconomic Assessment
By adopting an approach based on trade and private sector development (TPSD) in support of economic growth, the EU aims to tap the huge potential of the private sector to create jobs, with the overarching goal of eradicating poverty through sustainable and socially-inclusive development. In this way, the private sector will be engaged as an implementing and financing partner in the delivery of the 17 Sustainable Development Goals, aimed at ending poverty, fighting inequality and injustice, and tackling climate change by 2030.
EU actions that encourage economic growth through trade and private sector development and support for regional economic integration effectively complement actions by the EU’s Member States and development partners. These actions target the creation of better regulatory environments in partner countries, business development and access to finance, with a particular focus on job-creating micro, small and medium-sized businesses.