Langtímahagvöxtur

Langtímahagvöxtur is an Icelandic term that translates to "long-term economic growth." It refers to the sustained increase in the production of goods and services within an economy over an extended period, typically decades. This growth is generally measured by the increase in real Gross Domestic Product (GDP) per capita.

Key drivers of langtímahagvöxtur include capital accumulation, technological advancements, improvements in human capital through education and training, and institutional factors such as stable governance, property rights, and open markets. A sustained increase in productivity is considered the fundamental basis for long-term economic growth.

Policies aimed at fostering langtímahagvöxtur often focus on creating an environment conducive to investment, innovation, and efficient resource allocation. This can involve fiscal and monetary policies, trade liberalization, and investments in infrastructure and research and development. Understanding and promoting langtímahagvöxtur is a primary objective for many governments and international economic organizations as it is linked to improvements in living standards, poverty reduction, and overall societal well-being.