economic structure

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Economic structure refers to how an economy is organized. It measures a country’s total economic output (GDP) and employment by looking at three main areas: the primary, secondary, and tertiary sectors. It shows how the working population is divided among different types of work.

Key features of economic structure:

  • Low-income countries: Mostly rely on the primary sector, such as farming and mining.
  • Middle-income countries: Often have a growing secondary sector, like manufacturing and construction.
  • High-income countries: Mostly rely on the tertiary sector, which includes services like banking, healthcare, and education.

As countries experience economic development, workers typically move from the primary sector to the secondary and then the tertiary sectors. This process is called structural transformation. It helps improve productivity, supports urbanisation, and leads to higher incomes for the population.