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Economic growth is easy to understand: it means that people have access to goods and services of increasing quantity and quality.

What is hard, however, is to measure economic growth. This chart shows two ways of doing this for US growth over the past 160 years.

The purple lines represent a straightforward approach: each line tracks the share of households with access to one specific good or service. Starting from the top, you see the rising provision of basic infrastructure like running water, flush toilets, and electric power. You can also see the increasing availability of communication technology: radios, TVs, the Internet, and mobile phones. And further down, you see the rise of technologies that reduced work at home: vacuum cleaners, washing machines, dryers, and dishwashers.

This approach is very concrete; it shows practical ways in which the production and consumption of specific goods increased over time. The downside is that it only captures a limited number of particular goods. Millions of goods and services are produced and consumed, and most are not recorded with such precision.

A way to measure how people’s access to the full range of goods and services changes is to measure people’s incomes. This way of measuring growth is shown in the top left panel. The data on average income, here measured by GDP per capita, tells us that the average American was 13 times poorer in 1860 than in 2022 (adjusted for inflation).

These two ways of measuring economic growth have pros and cons: one is concrete but not comprehensive, the other is comprehensive but quite abstract. If we want to understand what growth means for our societies, I find it helpful to combine them both.

If you want to know more about this — and see how the inequality of incomes can be factored in — you can read my article: “What is economic growth? And why is it so important?” →

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For most of history, almost everyone everywhere was very poor. Hunger was common, half of the children died, and, as the chart shows, average incomes were low across all regions.

The chart also shows how people’s incomes have changed over the last two centuries. The chart highlights a stark divergence: while average incomes in every region have increased, the pace of this growth has varied enormously. Western Europe and the “Western Offshoots” (like the US and Australia) experienced early and sustained economic growth. Meanwhile, Sub-Saharan Africa and South Asia grew much more slowly.

Two hundred years ago, people in all regions were similarly poor. Today, the average incomes of people in Australia, the US, or Denmark are more than 15 times higher than those in Sub-Saharan Africa.

I wrote an article on how economic growth is possible and why it is important: “What is economic growth?” →

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Globally, the share of the population living in extreme poverty has declined fast, from 38% in 1990 to 9% in 2024.

Some countries, however, have not made any progress against poverty. Four of them are in Southeast Africa, as shown in the chart. In Zambia, Malawi, Mozambique, and Madagascar, most people still live in extreme poverty, and this hasn’t changed in decades.

Poverty has remained high because these economies have not achieved economic growth in recent decades.

In the 1990s, most extremely poor people lived in countries that went on to have strong economic growth. Today, however, a substantial share of the poorest people live in economies that have not grown in decades. Based on current trends, this means that the world cannot expect an end to extreme poverty.

Whether or not the economies that are home to the poorest people in the world start to grow will determine whether the world ends extreme poverty.

I’ve written more about this in “The history of the end of poverty has just begun”, where I explain why economic growth is key to ending poverty →

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In 1960, Singapore’s GDP per capita — a measure of average income — was a third of the average in Western Europe. It was even lower than Western Europe’s average income in 1900.

Since then, while Western Europe experienced steady growth, Singapore grew even faster. By 1994, it had surpassed Western Europe, and today, its average income is roughly twice as high. This is after adjusting for inflation and differences in living costs between countries.

Singapore became an independent republic in 1965. Key factors in its economic success include anti-corruption policies, investment in education and human capital, and its development as a global financial hub.

Explore how GDP per capita trajectories compare across countries →

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Economic growth is most important for the world's poorest people, and most of the world’s poorest live on the African continent. Are Africa’s economies growing?

The picture is mixed. In some countries, incomes have unfortunately declined in the last decades. This includes Madagascar, Zimbabwe, and Burundi. I have written about this in my brief explainer on extreme poverty.

In today’s Daily Data Insight, I want to focus on the other side: I want to highlight the African countries that are achieving economic growth. Nine of them are shown in the chart above.

In all nine countries, people’s average incomes have more than doubled since 1990.

This made substantial improvements in living standards possible: the share of people in extreme poverty and the rate of child mortality declined in all nine countries.

If you want to know more about the importance of growth and how it can be measured, you could read my article: What is economic growth? And why is it so important? →

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For almost all of human history, food was scarce for nearly everyone. The reason for this perpetual scarcity was that whenever food production increased, it did not lead to more food per capita but to more people.

Food production did not increase per capita. Population pressure ensured that living standards remained only barely above the subsistence level. Economic historians refer to this mechanism as the Malthusian Trap, and if you’d like to know more, you could read my article about it.

This changed in the last decades. More and more societies around the world broke out of the Malthusian Trap. We see this in the data as increasing food production in per capita terms. The chart shows that farmers have grown many fruits, vegetables, and nuts faster than the world population has increased.

The increase in global agricultural output was crucial for the reduction of hunger and famines that the world achieved in this period. Whether or not we will be able to end hunger globally will depend on whether this increase in food production will continue.

Explore global and country-specific data on a wide range of foods in our Food Data Explorer →

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Haiti and the Dominican Republic are two Caribbean countries that share the same island, Hispaniola. However, despite sharing the same island, the two nations have developed very differently in recent decades. In 1990, Dominicans had twice the GDP per capita of Haitians. 32 years later, they are seven times richer than Haitians.

The chart shows both trajectories. While the Dominican Republic experienced sustained growth during the three decades, Haiti’s GDP per capita has barely grown and, at times, even slightly decreased. To allow for comparisons, all incomes are shown in international dollars, which account for differences in cost of living across countries.

Today, Haiti is the poorest country in the Americas.

Explore economic growth in your country →

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Guyana, a small country in South America, has seen the fastest growth in gross domestic product (GDP) per capita in the world over the past decade.

This is illustrated in the chart, which shows GDP per capita for Guyana and the World, based on estimates from the World Bank.

The data is adjusted for inflation, so Guyana’s sharp growth is not due to price changes over time.

A large and sudden expansion in oil production has driven most of this growth. In 2020, Guyana began extracting oil. From 2020 to 2023, the country’s oil production grew 425%, making it a key contributor to global crude oil supply growth.

Over this period, Guyana’s GDP per capita rose from below the global average to well above it.

Read more about economic development and oil production →

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As this data from the International Labour Organization shows, the share of service jobs in all global employment has increased in the last 3 decades, from 34% in 1991 to 51% in 2019.

In this slow but steady change in the world's economy, the share of employment in agriculture has seen an equivalent decrease, from 44% to 27%.

The share of employment in the industry sector has remained stable throughout this period, at 22%.

Explore this data →