Economic growth is the increase in the production of economic goods and services in an economy over a period of time, typically measured by the rise in gross domestic product (GDP) or gross national product (GNP) adjusted for inflation (real terms)
. It reflects a country's ability to produce more goods and services, which generally leads to higher national income and improved standards of living
. Key factors contributing to economic growth include increases in physical capital (like machinery and infrastructure), human capital (education and skills), labor force size, and technological innovation, which enhance productivity and output
. Economic growth can be categorized as:
- Intensive growth : Growth due to more efficient use of inputs, such as higher productivity.
- Extensive growth : Growth due to increased inputs, such as population growth or expansion of resources
Economic growth is often seen as a process of transformation in an economy, moving through stages from agriculture-based to industrial and service-based economies, with shifts in labor and capital investment patterns
. In summary, economic growth measures how much more an economy produces over time, indicating improvements in wealth, income, and living standards, and is a central focus of economic policy and development strategies
