New! Sign up for our free email newsletter.
Reference Terms
from Wikipedia, the free encyclopedia

Economic growth

Economic growth is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Of more importance is the growth of the ratio of GDP to population (GDP per capita), which is also called per capita income. An increase in per capita income is referred to as intensive growth. GDP growth caused only by increases in population or territory is called extensive growth.

Growth is usually calculated in real terms -- i.e., inflation-adjusted terms -- to eliminate the distorting effect of inflation on the price of goods produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment."

As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how countries can advance their economies. The latter is the study of the economic aspects of the development process in low-income countries. 

Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure. For example, GDP only measures the market economy, which tends to overstate growth during the change over from a farming economy with household production. An adjustment was made for food grown on and consumed on farms, but no correction was made for other household production. Also, there is no allowance in GDP calculations for depletion of natural resources.

Related Stories
 


Science & Society News

October 8, 2025

Over 40% of fatal crash victims had THC levels far above legal limits, showing cannabis use before driving remains widespread. The rate didn’t drop after legalization, suggesting policy changes haven’t altered risky habits. Experts warn that the ...
BMJ Group has pulled a widely reported apple cider vinegar weight-loss study after experts uncovered major flaws in its data and analysis. Attempts to replicate the results failed, and irregularities raised questions about the trial’s reliability. ...
Researchers found that middle-aged adults, especially women, are far more likely to be addicted to ultra-processed foods than older generations. Marketing of diet-focused processed foods in the 1980s may have played a major role. Food addiction was ...
Beer and wine, staples of human history for millennia, are still yielding new surprises. Recent research highlights how yeast extracts can cloud lagers, gluten can be quickly detected with a simple test strip, tannins give red wine its lip-puckering ...
Rice, a staple for billions, is one of the most resource-hungry crops on the planet—but scientists may have found a way to change that. By applying nanoscale selenium directly to rice plants, researchers dramatically improved nitrogen efficiency, ...
Researchers reviewing 46 studies found evidence linking prenatal acetaminophen (Tylenol) exposure with higher risks of autism and ADHD. The FDA has since urged caution, echoing scientists’ advice ...
AI-powered analysis of routine blood tests can reveal hidden patterns that predict recovery and survival after spinal cord injuries. This breakthrough could make life-saving predictions affordable and accessible in hospitals ...
Meditation apps are revolutionizing mental health, providing easy access to mindfulness practices and new opportunities for scientific research. With the help of wearables and AI, these tools can now deliver personalized training tailored to ...
A team at RMIT University has created a cement-free construction material using only cardboard, soil, and water. Strong enough for low-rise buildings, it reduces emissions, costs, and waste compared to concrete. The lightweight, on-site process ...
New studies reveal that lifestyle changes—such as exercise, healthy eating, and social engagement—can help slow or prevent cognitive decline. Experts say this low-cost, powerful approach could transform dementia care and reduce its crushing toll ...
America already mines all the critical minerals it needs for energy, defense, and technology, but most are being wasted as mine tailings. Researchers discovered that minerals like cobalt, germanium, and rare earths are discarded in massive amounts, ...
Nitazenes, a powerful and largely hidden class of synthetic opioids, are quickly becoming a deadly factor in the overdose crisis. Over 20 times stronger than fentanyl, these drugs often go undetected on routine drug tests, making overdoses harder to ...

Latest Headlines

updated 12:56 pm ET