Primary Industry

The primary industry (or primary sector) is the sector of an economy that extracts or harvests products directly from the earth or sea, including agriculture, forestry, fishing, and mining. It forms the foundation of economic activity and is typically the largest sector in the early stages of economic development.

Definition

The primary sector encompasses activities that produce raw materials and basic foodstuffs. It includes:

• Agriculture and livestock
• Forestry and logging
• Fishing and aquaculture
• Mining and quarrying
• Extraction of oil and gas

These activities are characterised by direct dependence on natural resources and, often, by lower productivity growth than manufacturing or services.

Economic role

As economies develop, the share of the primary sector in output and employment tends to decline, in a process known as structural transformation. This shift reflects rising productivity in agriculture and the movement of labour into higher-value activities in the secondary and tertiary sectors.

Aspect	Description
Share of output	Large in developing economies; small in advanced economies.
Employment	Typically the largest employer in low-income countries.
Productivity	Often lower than in industry and services.

See also

• Secondary Industry
• Tertiary Industry
• Industrial Structure
• Development Economics