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
Measurement
[edit]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
[edit]- Productive capacity
- Potential output
- Production–possibility frontier
- Developing country
- Potential superpowers
References
[edit]- ^ "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.
- ^ "Potential Growth: A Global Database" (PDF). World Bank. 2023. Retrieved 18 November 2025.
- ^ "World Economic Outlook: Estimating Potential Output" (PDF). International Monetary Fund. 2015. Retrieved 18 November 2025.
External links
[edit]- "Economic Potential". The Great Soviet Encyclopedia (3rd ed.). The Gale Group. 1970. OCLC 14476314. Retrieved 28 August 2025.
- R.A. (13 June 2014). "Economic potential;In search of lost time". The Economist.
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