This segment of the economy focuses on providing services to consumers and businesses. It encompasses a wide range of activities, including retail, transportation, entertainment, finance, and healthcare. For example, a doctor providing medical care, a teacher educating students, or a shopkeeper selling goods all represent this economic sector.
The growth of this sector is a key indicator of economic development. A thriving services sector typically signifies a more advanced and prosperous society with higher disposable incomes and greater demand for specialized services. Historically, the relative importance of this economic segment has increased significantly as nations transitioned from agricultural and manufacturing-based economies.