What does economy mean?
Economy is a noun with two principal meanings in modern English. Its dominant sense refers to the organized system of production, distribution, trade, and consumption of goods and services within a country or region — phrases like 'the global economy', 'a struggling economy', and 'economic growth' reflect this usage. A second, older sense denotes careful management of resources: thrift, frugality, or the avoidance of waste, as in 'she spoke with economy' or 'an economy of effort'. Related senses include specific savings measures and, in travel contexts, the cheapest class of seating on aircraft. The word carries neutral connotations when describing financial systems, though it can suggest austerity or restraint when applied to personal habits or style. Derived forms — economic, economical, economist, economize — are among the most frequently used words in public discourse, making economy central to conversations about politics, business, and daily life.
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services; the system by which these are organized.
"The government introduced new policies to stimulate the economy."
Usually preceded by a definite article and often modified by an adjective indicating scale or condition (global, local, strong, weak).
Careful management of resources, especially money, to avoid unnecessary expenditure; thrift or frugality.
"They practised strict economy during the lean years."
A reduction in cost, effort, or time achieved through efficient design or arrangement.
"Buying in bulk offers considerable economies."
The cheapest class of accommodation or seating available on an aircraft or other form of transport.
"We flew economy to keep costs down."
The plural is used chiefly for multiple distinct economic systems (national economies) or for individual instances of saving (cost economies).
"Emerging economies are growing faster than developed ones."
"Economy" comes straight from Greek oikonomia — literally "household management" — so every time you talk about the economy, you're really talking about running a very large house.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of economy
Economy derives from the ancient Greek oikonomia, meaning household management, formed from oikos (house) and nomos (law or management) via oikonomos (household manager). Latin adopted the term as oeconomia, from which it passed into English in the early 16th century, initially retaining its sense of prudent domestic management before broadening to describe the management of state resources. By the 17th to 19th centuries, as political economy developed into a formal discipline, the modern sense of a nation's system of wealth production became established. Cognates and derivatives across European languages include French économie, German Ökonomie, and Spanish economía, all tracing back to the same Greek root.
Related word forms
How economy is actually used
As a countable noun, 'economy' usually refers to a specific national or regional economic system; uncountably, it denotes thrift or efficiency ('with economy'). 'Economical' means thrifty or cost-effective; 'economic' relates to the economy itself — confusing these adjectives is common.
Easily confused with economy
'Economy' refers to a system or practice of resource management (or thrift), while 'economics' is the academic study of such systems.