ACCA Certification Complete Practice Test 2026

Sustained economic growth is largely driven by the amount of new investments based on future demand expectations. When businesses and investors anticipate an increase in demand for goods and services, they are more likely to invest in new projects, technologies, and capacity. This investment fuels economic activity, leading to job creation, higher productivity, and ultimately, increased output and growth in the economy.

Investments based on future demand expectations stimulate a positive cycle: as businesses expand and invest in new resources, they hire more employees, which boosts consumer spending as more individuals have wages to spend. This increased consumption can further raise demand for products, encouraging even more investment. Therefore, the emphasis on future demand expectations highlights the importance of confidence and foresight in business investment decisions, which are essential for fostering a growing economy over time.