Demand-side factors, such as interest rates can affect the spending power of customers. Lowering the interest rate decreases the monthly mortgage rates, which leaves more spending money for families, where higher interest rates can cut down on family expenditure. Consumer confidence directly affects how much people will spend or save. Wages affect GDP when there is low or high inflation because people's money cannot stretch as far during high inflation periods, and they are likely to cut down on purchases.
Supply-side factors, such as the level of infrastructure development can affect how companies can supply their goods or services. Without good roads and communications, a company may not be able to be competitive. Human capital, which is the productivity of a workforce, can be increased by investment in the education and training of employees and can utilize new technologies and more sophisticated production processes.