- GDP Per Capita Definition. GDP per capita is a parameter that breaks down the GDP of a country to measure the economic prosperity of the citizens by simply dividing the GDP with the total population of that country.
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Sep 09, 2021 · Per capita GDP is a global measure for gauging the prosperity of nations and is used by economists to analyze the prosperity of a country based on its economic growth. There are a few ways to ...
The gross domestic product per capita, or GDP per capita, is a measure of a country's economic output that accounts for its number of people.It divides the country's gross domestic product by its total population.
Aug 26, 2021 · GDP Per Capita is a measurement of the approximate value of a country’s gross domestic product (GDP) contributed by each member of its population. It is calculated by taking a country’s GDP and dividing it by the country’s population. GDP refers to the total value of all goods and services produced within a country’s borders during a ...
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Oct 14, 2021 · Per capita GDP is typically expressed in local current currency, local constant currency or a standard unit of currency in international markets, such as the U.S. dollar (USD). GDP per capita is an important indicator of economic performance and a useful unit to make cross-country comparisons of average living standards and economic wellbeing.
- Example of GDP Per Capita
- Factors of GDP Per Capita
- Status of GDP Per Capita as of 2019
- Difference Between GDP Per Capita and GDP
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The calculation is very simple and straight forward, there are two components – mainly GDP and the total population of the country. So, the formula for GDP Per CapitaFormula For GDP Per CapitaGDP per capita formula calculates the average of the nation's economic output when divided by the total population. In other words, it is the equal apportioning of the gross domestic product for each resident to represent the country's standard of living.read more is Total GDP / Total Population 1. If we are looking at a particular point in one country, we can use Nominal GDPwhich means that the nominal GDP is measured in current $. 2. Another option is, when we want to compare countries using this measure, we have to Purchasing Power ParityPurchasing Power ParityPurchasing power parity formula depicts the variation in the exchange rate between the currencies of two different nations. It is evaluated as the fraction of a particular goods' cost in one country to that in the second country.read m...
A country has a nominal GDP of $5 trillion and a population of around 300 million, as of December 2018. Let us try to calculate the GDP per capita using the nominal GDP formula. Solution: 1. Nominal GDP: $5,000,000,000,000 2. Population: 300,000,000 The calculation of GDP per capita is shown below.It has many linkages to economic growth, mainly the government can use it to see how the economy is growing in terms of the population.It is very crucial to see each aspect as it helps to assess the domestic influence on the production at a national level.It can be also used to see if the economy is growing or shrinking, the GDP per capita indicates a lot to analyze for the analysts.For instance, if it is decreasing it means that either the population is growing faster than the GDP, or the production is not much enough for the population pulling the Per capita GDP downwards.
Below are the top 10 countries with the highest GDP per capita as of 2019: Source: http://statisticstimes.com/ 1. As we can see from the chart, Luxembourg is the richest amongst all the countries, since it has the highest GDP per capita of $113,196. Also, it has a comparatively low population which helps the nation to stay at the top. As per the current data, it seems that it will maintain this position for next year too since there is a huge difference of $29840 between 1st and 2nd 2. It is pure math, if the denominator (Population) is high is will give a small number (GDP Per Capita) as a result, lower the denominator the better. Or else match the numerator (GDP) to make up for the high denominator.GDP is the total value of goods and services being produced in a country; it is a number that is published officially on the charts to measure the health of an economy.While, it is in a way GDP divided amongst the citizens of the country, which tells us that the overall production of the nation is for the country’s population and how much everyone is entitled to...GDP assists in measuring the health of the economy while they help to know the individual prosperity of its citizens.
All in all, GDP per capita plays a very crucial role in determining the country’s internal growth and prosperity. It also helps to analyze and compare one nation with others on a global scale, every nation allocates the resources for growth or to control the headcount according to this particular number.
This has been a guide to what is GDP per capita and its definition. Here we discuss how to calculate GDP per capita along with examples and its key factors. You can learn more about economics from the following articles – 1. Covered Interest Rate Parity 2. Expenditure Approach for GDP 3. Calculate Debt to GDP Ratio 4. Real GDP Per Capita