Secondary sector of the economy























Economic sectors

Three-sector model

Primary sector: raw materials
Secondary sector: manufacturing
Tertiary sector: services

Additional sectors

Quaternary sector: information services
Quinary sector: human services

Theorists

AGB Fisher · Colin Clark · Jean Fourastié

Sectors by ownership

Business sector · Private sector · Public sector · Voluntary sector

  • v

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The secondary sector of the economy includes industries that produce a finished, usable product or are involved in construction.


This sector generally takes the output of the primary sector and manufactures finished goods or where they are suitable for use by other businesses, for export, or sale to domestic consumers. This sector is often divided into light industry and heavy industry. Many of these industries consume large quantities of energy and require factories and machinery to convert raw materials into goods and products. They also produce waste materials and waste heat that may cause environmental problems or cause pollution. The secondary sector supports both the primary and tertiary sector.


Some economists contrast wealth-producing sectors in an economy such as manufacturing with the service sector which tends to be wealth-consuming.[1] Examples of service may include retail, insurance, and government. These economists contend that an economy begins to decline as its wealth-producing sector shrinks.[2] Manufacturing is an important activity to promote economic growth and development. Nations that export manufactured products tend to generate higher marginal GDP growth which supports higher incomes and marginal tax revenue needed to fund the quality of life initiatives such as health care and infrastructure in the economy. The field is an important source for engineering job opportunities. Among developed countries, it is an important source of well-paying jobs for the middle class to facilitate greater social mobility for successive generations on the economy.































































































Largest countries by industrial output according to IMF and CIA World Factbook, 2016
Economy
Countries by industrial output in 2016 (billions in USD)
(01)  China


4,566
(—)  European Union


4,184
(02)  United States


3,602
(03)  Japan


1,368
(04)  Germany


1,050
(05)  India


672
(06)  South Korea


531
(07)  United Kingdom


505
(08)  France


478
(09)  Italy


442
(10)  Russia


424
(11)  Canada


424
(12)  Brazil


392
(13)  Indonesia


376
(14)  Australia


355
(15)  Mexico


346
(16)  Spain


312
(17)  Saudi Arabia


276
(18)  Turkey


232
(19)  Taiwan


191
(20)  Poland


180

The twenty largest countries by industrial output in 2016, according to the IMF and CIA World Factbook.


See also



References












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