What is a service economy?

A service economy is an economy in which the primary economic activity is the provision of services rather than the production of goods. In a service economy, industries such as retail, finance, healthcare, education, and entertainment play a significant role in driving economic growth and creating jobs. Service-based industries rely on human capital, expertise, and skill rather than physical resources or production facilities. Examples of countries with well-developed service economies include the United States, Canada, and the United Kingdom.