What does "economic growth" refer to?

Economic growth refers to the increase in a country's output of goods and services, typically measured by the rise in Gross Domestic Product (GDP). This concept reflects an economy's ability to produce more, which can lead to higher standards of living and better employment opportunities. When a country experiences economic growth, it signifies that it is improving its economic performance and can support a larger population, provide more services, and enhance overall wealth.

The growth in output often results from factors such as advancements in technology, improvements in education, and more efficient use of resources, all contributing to a higher capacity for production. In a growing economy, there tends to be more investment and consumption, driving further growth.

This understanding highlights the significance of economic growth in fostering improved living conditions and driving innovation, which is essential for the overall health of an economy.