🌍 How Does an Economy Develop?

 

An economy develops when people discover new resources, create new tools, and invent new technologies.

At first, many countries have an agrarian economy (farming-based). Over time, they move to an economy based on manufacturing and industry. This change is called industrialisation.

Industrialisation:

• Started in England in the late 18th century
• Spread to Europe and North America in the 19th century
• Caused people to move from rural areas (villages) to urban areas (cities)

As economies develop:

• The total number of workers increases
• Fewer people work in agriculture
• More people work in industry and services

👉 In short:
Economies grow by changing from farming to industry, using new ideas and technologies, and moving people to cities.