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Economic growth
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<p>Economic growth is the increase or improvement in the inflation-adjusted <a href="/facts/Economics/HYctA2Dn">economy</a> in a financial year. The economic growth rate is typically calculated as <a href="/facts/List_of_countries_by_real_GDP_growth_rate/ISMTpDKS">real Gross domestic product (GDP) growth rate</a>, <a href="/facts/List_of_countries_by_real_GDP_per_capita_growth/31Ta1qkh">real GDP per capita growth rate</a> or <a href="/facts/List_of_countries_by_GNI_per_capita_growth/s706rq8e">GNI per capita growth</a>. The "rate" of economic growth refers to the <a href="/facts/Exponential_growth/m4yEqKJ7">geometric</a> annual rate of growth in GDP or GDP per capita between the first and the last year over a period of time. This growth rate represents the trend in the average level of GDP over the period, and ignores any fluctuations in the GDP around this trend. Growth is usually calculated in "real" value, which is <a href="/facts/Real_vs._nominal_in_economics/r0oa61cC">inflation-adjusted</a>, to eliminate the distorting effect of <a href="/facts/Inflation/YvKtKrVI">inflation</a> on the prices of <a href="/facts/Goods/AtK6gQh2">goods</a> produced. <a href="/facts/List_of_countries_by_real_GDP_per_capita_growth/31Ta1qkh">Real GDP per capita</a> is the GDP of the entire country divided by the number of people in the country. <a href="/facts/Measures_of_national_income_and_output/XfyDGasx">Measurement of economic growth</a> uses <a href="/facts/National_accounts/Ss4mUMc3">national income accounting</a>. </p><p>Economists refer to economic growth caused by more efficient use of inputs (increased <a href="/facts/Productivity/yXlzAjC2">productivity</a> of <a href="/facts/Labour_productivity/tvolIl5T">labor</a>, of <a href="/facts/Physical_capital/69oNveAh">physical capital</a>, of <a href="/facts/Energy_(disambiguation)/1dQjDdm1">energy</a> or of <a href="/facts/Material/Rmt5HySL">materials</a>) as <i><a href="/facts/Intensive_growth/4KRrMBaM">intensive growth</a></i>. In contrast, economic growth caused only by increases in the amount of inputs available for use (increased population, for example, or new territory) counts as <i><a href="/facts/Extensive_growth/rB8t3xYl">extensive growth</a></i>. <a href="/facts/Innovation/aa7hadLw">Innovation</a> also generates economic growth. In the U.S. about 60% of <a href="/facts/Consumer_spending/mf0XwErW">consumer spending</a> in 2013 went on goods and services that did not exist in 1869. </p>