hagvöxt

Hagvöxtur (economic growth) is the rate at which an economy's real output increases over time. It is usually measured as the percentage change in real GDP from one period to the next, and is sometimes reported as real GDP per capita to account for changes in population.

Measurement and concepts: Real GDP growth excludes inflation. Long-run hagvöxtur reflects growth in potential output, while short-run movements occur around that trend. Growth arises from higher capital stock, more labor, and, especially, gains in productivity.

Determinants and theories: In neoclassical models, sustained long-run hagvöxtur is driven mainly by technology and productivity, with capital and labor playing supporting roles. Endogenous growth theories stress ideas, human capital, and policy as persistent drivers of growth.

Impacts and policy: Higher hagvöxtur can raise living standards and tax revenues, but may involve distributional or environmental trade-offs. Policy aims typically include macroeconomic stability, investment in education and R&D, infrastructure, and institutions that foster competition and innovation.

Limitations: GDP growth does not by itself measure well-being, environmental sustainability, or inequality. Growth analyses benefit from complementary indicators such as productivity, employment quality, health, and ecological impact.