Long-term economic growth refers to an increase in an economy's productive capacity over time. It is measured by sustained increases in real GDP (gross domestic product) and productivity.
Related terms
Gross Domestic Product (GDP): This is the total value of all goods and services produced within a country during a specific period.
Productivity: Refers to how efficiently resources are used in production. Higher productivity means more output can be produced with the same amount of inputs.
Capital Investment: This term refers to expenditures on physical assets such as machinery, equipment, buildings, etc., which are used in production processes. Increased capital investment can contribute to long-term economic growth.