Economic potential

Economic potential is the potential of a region, nation, or corporation for economic development and growth. Typically, discussions of economic potential occur when available resources have not yet been tapped and fully developed or exploited, possibly because of missing infrastructure.

The Dictionary of Military and Associated Terms (2005) defines economic potential as

"The total capacity of a nation to produce goods and services."[1]

Measurement

Economists measure economic potential through indicators such as potential output, labor productivity, and capacity utilization. Institutions such as the International Monetary Fund and the World Bank use structural models to estimate potential growth trends and the distance of an economy from its productive frontier.[2][3]

See also

References

  1. ^ "Joint Publication 1-02" (PDF). Department of Defense Dictionary of Military and Associated Terms. United States Department of Defense: 174. 12 April 2021. JP 1—02. Retrieved 28 August 2025.
  2. ^ "Potential Growth: A Global Database" (PDF). World Bank. 2023. Retrieved 18 November 2025.
  3. ^ "World Economic Outlook: Estimating Potential Output" (PDF). International Monetary Fund. 2015. Retrieved 18 November 2025.
Stub icon

This economics-related article is a stub. You can help Wikipedia by adding missing information.

Content Disclaimer

Informasi ini disarikan dari Wikipedia dan disajikan kembali untuk tujuan edukasi. Konten tersedia di bawah lisensi CC BY-SA 3.0. Kami tidak bertanggung jawab atas ketidakakuratan data yang bersumber dari kontribusi publik tersebut.

  1. The information displayed on this website is sourced in part or in whole from Wikipedia and has been adapted for the purpose of restating it. We strive to provide accurate and relevant information, however:
  2. There is no guarantee of absolute accuracy. Wikipedia is an open, collaborative project that can be edited by anyone, so information is subject to change.
  3. It is not intended to constitute professional advice. The content displayed is for informational and educational purposes only. For important decisions (e.g., medical, legal, or financial), please consult a professional.
  4. Content copyright. Wikipedia is licensed under the Creative Commons Attribution-ShareAlike License (CC BY-SA). This means that content may be reused with appropriate attribution and shared under a similar license.
  5. Responsible use. Any risk arising from the use of information from this website is entirely the responsibility of the user.