economic productivity

Economic productivity refers to how efficiently an economy uses its resources, like labor and capital, to produce goods and services. It measures the output (what is produced) relative to the inputs (resources used). Higher productivity means more goods and services are created with the same or fewer resources, leading to economic growth, higher wages, and improved living standards. Improving productivity typically involves better technology, skills, or processes that make production more efficient. It’s a key indicator of economic health and competitiveness, reflecting how effectively an economy converts resources into valuable outputs.