Economic growth means a country produces more goods and services over time. It is usually measured as the percentage change in real GDP from one period to the next. A growing economy can support more jobs, higher wages, and better public services. A shrinking one struggles to do any of those.

Growth comes from two main sources. One is adding more inputs: more workers, more machines, more land. The other is using inputs more productively. Productivity gains are the bigger prize because they raise output without requiring more resources. Technology, education, and better management all drive productivity.

Growth is not automatic. Countries can stagnate for decades. Wars, corruption, poor institutions, and bad policy all hold economies back. Growth also has costs. It can strain the environment and widen inequality if the benefits are not shared.

Sources of growth

• More labor and capital
• Technological innovation
• Education and skill development
• Infrastructure investment
• Sound institutions and rule of law