Economic Growth
An increase in the production of goods and services in an economy over time, typically measured by GDP growth.
What is Economic Growth?
Economic growth refers to an increase in the productive capacity and output of an economy over time, most commonly measured as the annual percentage change in real (inflation-adjusted) GDP. Growth is driven by four main factors: labor force growth, capital accumulation, technological progress, and total factor productivity improvements. Sustained long-run growth primarily comes from productivity and technological innovation rather than simply adding more workers or capital. Economic growth raises living standards, funds government services, and reduces poverty. 'Growth' in economic parlance almost always refers to real growth (adjusted for inflation) — nominal growth without real gains simply reflects rising prices.
Example
China's economy grew at an average annual rate of approximately 9.5% per year from 1978 to 2018 — one of the most sustained periods of rapid growth in history — lifting over 800 million people out of extreme poverty. By comparison, the US has averaged roughly 2–3% annual real GDP growth in the post-war era.
Source: World Bank — GDP Growth