Stockholm (Web Desk/Agencies): The 2025 Nobel Prize in Economics has been conferred upon Joel Mokyr, an American-Israeli scholar, France’s Philippe Aghion, and Canadian economist Peter Howitt, in recognition of their pioneering contributions to understanding how technological progress sustains long-term economic growth.
According to the Royal Swedish Academy of Sciences, Mokyr, aged 79, was awarded one half of the prize “for identifying the fundamental conditions necessary for continuous growth through technological advancement.” The remaining half was jointly presented to Aghion, 69, and Howitt, 79, “for formulating the theory of enduring growth driven by creative destruction.”
John Hassler, who chairs the prize committee, said the trio’s work provides answers to vital questions about how innovation drives economies and ensures lasting prosperity. He pointed out that for much of human existence, living standards remained largely static, with growth virtually nonexistent from one generation to the next.
“Economic progress was negligible throughout most of history,” Hassler observed, “but over the past two centuries, the world has witnessed unprecedented expansion.”
Committee member Kerstin Enflo remarked that this period of rapid growth, though remarkable, is relatively brief when viewed against centuries of stagnation. She emphasized that the laureates’ findings serve as a reminder that progress cannot be taken for granted and that societies must protect the forces that enable innovation and productivity to flourish.
Mokyr, a professor at Northwestern University, relied on extensive historical evidence to trace how the conditions for sustained economic growth became entrenched, particularly through periods of technological transformation.
Aghion and Howitt, on the other hand, constructed a mathematical model describing the process of “creative destruction,” in which new and improved products enter the market, displacing older ones and driving progress despite the losses faced by outdated industries.
Reacting to the news, Aghion said he was overwhelmed and lost for words. “I’m still speechless. It came as a complete surprise,” he told reporters by phone. He also cautioned that barriers such as steep tariffs, introduced after U.S. President Donald Trump’s return to office, could hinder global growth.
“Openness is essential for prosperity,” Aghion said, warning that restrictions on trade and innovation would impede progress. He further urged Europe not to allow the United States and China to dominate technological leadership, noting, “European nations must realize that they can no longer afford to lag behind.”
The economics award, though not part of Alfred Nobel’s original five prizes, was established by Sweden’s central bank in 1968 and follows the same selection process overseen by the Royal Swedish Academy of Sciences.
This year’s Nobel season concluded with the announcement of the economics prize, following awards recognizing discoveries in medicine, achievements in physics and chemistry, and contributions to literature and peace. The literature award went to Hungarian writer László Krasznahorkai, while Venezuelan opposition leader María Corina Machado received the Nobel Peace Prize.
Each laureate will be presented with a diploma, a gold medal, and a $1.2 million cash award during formal ceremonies in Stockholm and Oslo on December 10, marking the anniversary of Alfred Nobel’s death in 1896.