What can limit the potential economic growth of a country?

Limited natural resources can significantly restrict a country's potential for economic growth. Natural resources such as minerals, fossil fuels, water, and arable land play a crucial role in a nation's ability to produce goods and services. When these resources are scarce, it limits the productivity of industries and can hinder the overall economic development.

For instance, a country with limited arable land faces constraints in agricultural production, leading to food shortages and dependency on imports. Similarly, countries lacking energy resources may find it challenging to power manufacturing and transportation sectors.

On the other hand, high levels of education enhance the skill set of the workforce, enabling higher productivity and innovation, while technological advancements can lead to more efficient production processes. Increasing foreign investment typically injects capital into the economy, which can help overcome some limitations posed by restricted resources. In summary, while natural resources are not the only factor influencing economic growth, their limitation can be a significant barrier to achieving a prosperous economy.