Productivity Growth

Productivity growth refers to an increase in the efficiency of producing goods and services, meaning more output is generated with the same amount of input. This can occur through improvements in technology, better workforce skills, or more effective processes. For example, a factory may produce twice as many widgets using the same number of workers and machines due to upgraded equipment. Productivity growth is essential for economic expansion, as it can lead to higher wages, improved living standards, and stronger economies, enabling countries to produce more without requiring proportionally more resources.