What does economic growth mean?

"Economic growth" is the increase in the production and consumption of goods and services within an economy, usually measured by the percentage volume growth of prosperity. The most common measure for this is the gross domestic product (GDP), often expressed at market prices over a certain period.

A distinction is made between nominal growth, which includes inflation, and real growth, which is corrected for inflation. Negative economic growth is referred to as an economic contraction or a recession.

Economic growth arises from factors such as population growth, higher average consumption, improved labour productivity, and a positive trade balance due to more exports than imports. It is a crucial concept for prosperity and standard of living, but must be interpreted with the necessary caution and in the right context.