How does an increase in real wages, adjusted for the cost of living, typically affect a country's exports and overall economic growth?

When real wages increase, it means that workers have more purchasing power because their income is rising faster than the cost of living. This can lead to higher demand for goods and services, both domestically and internationally. As people buy more, companies may need to produce more, which can boost economic growth. However, if wages rise significantly, it might make a country's products more expensive compared to those from other countries, potentially reducing exports. For example, if a country's workers earn more money and spend it on local goods, this can help the economy grow, but if the prices of these goods rise too much, other countries might start buying cheaper alternatives instead.