All you Need to Know About a Service Economy

The world economy is changing to service-driven one as countries are becoming dependent on value-based services. Such evolution is happening due to increased importance that is being put on the Service sector in most nations. According to some economists, the growth of a country can be measured by the level of growth of the service industry. From history, it is evident that all the countries in the world must have experienced a shift from agricultural to industry and then to service sector during their different stages of development. The change has also resulted in a rise of a different definition of products as well as services.

The organizations that deal with providing services vary across the globe. For example, on international levels, there are airlines, hotels, banking, telecommunication and insurance, all of which drive economies and business forward. On the local level, there are locally based services from restaurants, beauty parlors, laundries and so on all of which contribute significantly to a country’s growth.

There are a lot of services that are continually being launched so as to meet the demands of the current population. For example, during the launch of mobile banking platform, not many people anticipated that it would result in a high demand for online banking, financial related service as well as demand for email providers in the future. Today, the demand has gone so high such that almost every grown-up in the world is using these services.
Service industry is thus playing a crucial role in growth of economies. For example, in 2008, services contributed over fifty percent of the Gross Domestic Product in developing countries. Due to such statistics, as the demand for economic growth increases, so is the demand for service industry. Additionally, the service industry is also providing employment to many people who are contributing greatly to the economies of their respective countries.