A national economy refers to the economic activities and financial systems of a specific country. It includes how goods and services are produced, distributed, and consumed within that nation. Factors like employment, inflation, and GDP (Gross Domestic Product) help measure the health of a national economy. Each country has its unique economic structure, influenced by its resources, culture, and government policies.
National economies can be categorized into different types, such as developed, developing, and emerging economies. Developed economies, like the United States and Germany, typically have high income levels and advanced infrastructure. In contrast, developing economies, such as India and Brazil, are still growing and improving their economic conditions. Understanding these differences helps in analyzing global trade and