Explanation:

About Circular Economy

• A circular economy is an economic system aimed at eliminating waste and the continual use of resources. 
• It is a regenerative approach, which is in contrast to the traditional linear economy, which has a "take, make, dispose" model of production.
• Here, products are designed for durability, reuse and recyclability and thus almost everything gets reused, remanufactured, and recycled into a raw material or used as a source of energy.
• Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system.

Significance

• Minimize waste: It minimises the use of resource inputs and the creation of waste, pollution and carbon emissions. 
• Improve productivity: It aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources.

Hence both statements are correct.