Macroeconomic Stability and Sustainable Development: Cross-Country Evidence from Growth, Inflation, and Employment Dynamics

Abstract

Macroeconomic stability is a key factor for economic growth, employment and sustainable development. This paper explored the cross-country differences and correlations of economic growth, inflation, unemployment and interest rate across 10 countries in the period 2010-2023. A quantitative research method was used, with 500 secondary macroeconomic observations sourced from Zenodo. Macroeconomic patterns and relationships were analysed with descriptive statistics, Pearson correlation analysis, and multiple linear regression. The results showed average rates of GDP growth of 2.41%, inflation of 5.09% and unemployment of 6.91%. The largest average value of GDP growth was in Japan (3.44%) while the smallest was in Canada (1.18%) among the observations analysed. Pearson correlation analysis revealed insignificant relations between GDP growth and inflation, unemployment rate and interest rate. The multiple linear regression revealed that none of these variables were significant in predicting GDP growth with a low R² (0.0025) and a high P-value (0.743). The results indicate that there were no significant linear relationships found between the variables selected for the macroeconomic indicators available in the observations. However, because of the irregularity of temporal coverage, repeated country-date observations, and the uncertain reliability of the sources, the interpretation and generalizability of the results is limited. In addition, there were no direct indicators of sustainability, which meant that sustainable development outcomes could not be assessed empirically. Moving forward, researchers should combine economic data with environmental, institutional and social development variables to enhance cross-country evidence and guide policies that foster economic stability, resilience and inclusive sustainable development.