How to Define GDP per Capita

To define GDP per capita, you need to know what GDP per capita means. GDP per capita is the measure of the country’s economic output for every person, and it divides the gross domestic product of the country by its total population. And that makes the best measurement of the standard living of a country. Continue reading for more useful info provided by the best do my economics homework services.

gdp definition

Short History about GDP per Capita

GDP per capita is the measure of the total output of the country taking the gross domestic product. The per capita is useful in comparing one country to another country because it shows the performance of countries. If there is a rise in the GDP per capita, then it means growth in economy as well as it reflects an increase in productivity.

General Information about GDP per Capita

GDP is one of the essential indicators of the economic performance of the country. It is calculated by totalling the value of all final services and goods produced in the country or it can be calculated by adding the annual incomes of all working citizens. Another thing is that GDP per capita is used as an indicator of the standard of living and having higher GDP per capita is equating to the higher standard of living.

GDP per Capita Formula

The formula is GDP divided by the population. If you want to look at 1 point at a time, you can use the nominal GDP, and then divide it by the current population.

gdp per capita formula

Comparing: If you want to compare the per capita GDP between countries, you need to use the purchasing power parity GDP that creates equality or parity between countries through comparing the basket of similar goods.

Explanation of GDP Index

GDP index is an indicator used for calculating the inflation by comparing current GDP to the GDP in the reference year. The fact is that GDP index is different from other popular inflation that measures CPI, which includes all the products related to GDP and it does not include the changes’ effects on the import prices.

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Country with Highest GDP per Capita List

If you want to know the country with the highest GDP per capita, check this out:

  • Australia: The country has about $43,074 GDP per capita.
  • Canada: The country has $43,427 per capita GDP.
  • San Marino: It has $44,480 GDP per capita.
  • Switzerland: The country has $46,430 GDP per capita.
  • United States: US have $53,101 per capita GDP.

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