Economic production, usually measured using gross domestic product (GDP) or gross national product (GNP), is not the same as economic productivity. Production is creating goods and services. Productivity is what you do with goods and services. To gain insight into the difference let’s look at a simple example.
GDP is a flawed measure
Simplistically, if you produce a widget that nobody uses then you’ve produced something but it is not productive. A little more realistically if you build a building at a cost of AED 60 million and valued in the market at AED 100 million then you have contributed AED 40 million to GDP (local resources involved that contributed to GDP would be counted in the AED 60 million cost). However this contribution to GDP is the same regardless of what is happening with the building. Regardless of whether you fully rent out the building or if it remains empty the GDP contribution remains the same. A reasonable person might argue that a GDP whereby the economy uses the production is healthier than the same GDP whereby the economy does not use the production.
So although GDP growth is often used as the main measure of the health of an economy it is clear that this does not give the full story. How can we clarify the picture further? One way to measure productivity, or if goods and services are being used, is by looking at the total value of transactions in an economy. The idea is that the greater the value of transactions the greater economic activity and, presumably, the greater use of goods and services.