What is the Service Economy?

The concept of service economy

The service economy is known in English as one of the sectors of the economy that relies on the idea of ​​providing public services to people, in exchange for obtaining specific financial returns that contribute to sustaining the local economy, and the service economy. as the economic sector that is willing to support production within the local economy of countries, especially developing countries, and contributes to transform the products offered into services that support the basic needs of citizens and tourists in a country, and they benefit from the services provided to all, such as: tourism and travel services, telephone and Internet services, and other services. Read more: What is a Financial Investment?

Characteristics of the service economy

• It is considered one of the easiest types of economics in terms of accounting classifications. It's easy to deal with daily accounting entries in financial statements. It helps transform many of the products offered in commercial markets into useful services for the community.
• It seeks to apply the method of government control over product services and ensure that they comply with legal specifications.
• It is developing significantly with different types of rural and urban societies.
• It depends on the integration with the industrial environment in the establishment of plans that define the nature of the services to be provided within this economic sector.
• It provides support for the commercialization of products by studying the quality of life that prevails in the community and the selection of service products that provide adequate services to people.

The impact of the service economy on the general economy

The service economy is one of the economic sectors that has the greatest impact on the general economy, specifically on the gross domestic product of the countries. The economic services that are provided to the population in most countries of the world constitute 50% of the gross domestic economic product, especially in developing countries that depend on the provision of services as one of the means that contribute to sustaining their economy and the service economy. It is also one of the most important elements that contribute to sustaining population growth, the higher the quality of the services provided to the population, the greater the population growth and the continuous development of the commercial market.

services economy services

• Financial services: These are public services that are provided on a permanent basis, and include all financial transactions that depend on financial exchange, the provision of loans, financial investments, cash savings and other services.
• Tourist services: They are economic services that provide support to the entire economic sector; It seeks to pay attention to tourist places and sites that contribute to attracting tourists from different countries of the world, and is also interested in the role of domestic tourism in supporting economic development.
• Health services: are all services that provide medical care and treatment to patients based on the role of health centers and hospitals in providing adequate treatment to people.
• Educational services: they are among the most widespread economic services; It includes the provision of educational institutions for students at all levels of study.