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Economic Growth

ee-kuh-NOM-ik GROHTH /ˌiːkəˈnɒmɪk ɡroʊθ/

noun phraseB2GRESATTOEFLIELTS

FormalStandard

An increase in the amount of goods and services produced per head of the population over a period of time.

Economic growth is typically measured by the annual percentage change in real GDP. It's a key indicator of a nation's prosperity and standard of living, but it doesn't always reflect equitable distribution of wealth or environmental sustainability.

The story behind the word. The term 'economic' derives from the Greek 'oikonomikos,' meaning 'pertaining to household management,' combining 'oikos' (house) and 'nomos' (managing). 'Growth' comes from Old English 'growan,' meaning 'to grow' or 'to increase.' Together, 'economic growth' describes the expansion of a nation's 'household' or economy, a concept that became central to modern economics in the 18th century with Adam Smith.

Word relationships

prosperity: General well-being and success, often a result of economic growth, but not the growth itself.
expansion: A phase of the business cycle characterized by growth, often used interchangeably in context but 'economic growth' is a broader concept.

recession: A period of economic decline.
stagnation: A prolonged period of little or no economic growth.

Commonly confused with

Development: Economic development is a broader concept than economic growth, encompassing improvements in living standards, education, health, and infrastructure, not just output.

Collocations

sustainable economic growth
strong economic growth
foster economic growth
drive economic growth
rate of economic growth

Example sentences

"Sustainable economic growth is crucial for reducing poverty and improving living standards in developing nations." Discussing national development.
"The government's new policies aim to stimulate economic growth by investing in infrastructure and education." A government report.

Memory hook

Think of the 'economy' (the big house) getting 'bigger' (growing). Economy Gets Bigger

When not to use

Avoid using 'economic growth' to describe a temporary increase in sales for a single company, as it refers to the overall national or regional economy.

Fun facts

The concept of measuring economic growth systematically is relatively modern, gaining prominence after World War II.
Some economists advocate for 'degrowth' or 'post-growth' models, arguing that endless economic growth is unsustainable.

Related words

Expansion, GDP, Recovery

Explore more words

economist, sustainability, accumulation, productivity, decouple