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Economic sector

An economic sector groups activities with similar roles in production and provision. One common introductory classification distinguishes primary extraction, secondary production, tertiary services and quaternary knowledge-based activities. Other classification systems use different boundaries. These activity sectors differ from the public, private and not-for-profit classification of ownership or purpose.

Worked example

A government-owned hospital operates in services while being public-sector by ownership and governance. The two classifications answer different questions.

Common mistake

Assuming tertiary means private sector or that economic-sector categories determine an organisation’s legal form.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA BT Supporting September 2026–June 2027
FIA FBT Supporting September 2026–June 2027