Total factor productivity is an indicator of economic growth, but it isn’t the only measure of an economy’s health. A high TFP often indicates that an economy is more efficient or the cost of production has decreased. Efficient production allows businesses to keep their prices low while still generating profit. This could lead to economic growth if an economy is solely made up of these businesses, but economic theory is complex, and many other factors can influence the economy. Outside forces such as a widespread natural disaster or population decline may slow economic growth even if TFP remains high.