primarysector

The primary sector, also called the extractive sector, refers to the portion of an economy that harvests or extracts natural resources from the environment, rather than manufacturing or providing services. It includes agriculture, forestry, fishing, mining, and energy extraction, as well as related activities such as quarrying and the initial processing of raw materials. The primary sector supplies raw inputs to the secondary sector (manufacturing) and to the tertiary sector (services) and is often linked to rural economies.

Measuring its output typically involves value added in national accounts or gross output, reflecting the contribution of activities such as crop production, timber harvest, mineral extraction, and oil and gas production. The sector tends to be labor-intensive in lower-productivity settings, although automation and capital intensity have increased in many areas.

Economic role varies by development level. In advanced economies, the primary sector usually accounts for a smaller share of GDP and employment as economies diversify toward services and high-value manufacturing. In many developing and resource-rich economies, it can remain a substantial or even dominant contributor to national income and export earnings, subject to commodity price cycles and geopolitical factors.

Challenges facing the primary sector include price volatility for commodities, climate change, land and water use pressures, environmental sustainability concerns, and policy influences such as subsidies, trade barriers, and land rights. Sustainable management and diversification strategies are often pursued to reduce vulnerability and support long-term growth.

In contemporary policy and economic analysis, the primary sector is often discussed alongside the secondary and tertiary sectors in sectoral development strategies.