What is capita gdp

It divides the country's gross domestic product by its total population. Learn what the GDP is, plus we'll provide context on how a country's overall GDP doesn't always accurately show how prosperous a country is for those living there. A country's GDP or gross domestic product is calculated by taking into account the monetary worth of a nation's goods and services after a certain period of time, usually one year. It's a measure of economic activity. Then, this amount of wealth is divided among a given country's population to solve for its GDP per capita.

Essentially, GDP per capita acts as a metric for determining a country's economic output per each person living there. Often times, rich nations with smaller populations tend to have higher per capita GDP. Once you do the math, the wealth is spread among fewer people, which raises a country's GDP. The fact that the GDP per capita divides a country's economic output by its total population makes it a good measurement of a country's standard of living , especially since it tells you how prosperous a country feels to each of its citizens.

The formula is GDP divided by population. If you want to compare GDP per capita between countries, you must use purchasing power parity. That creates parity, or equality, between economies by comparing a basket of similar goods. It's a complicated formula that values a country's currency by what it can buy in that country, not just by its value as measured by its exchange rates. The U. The United States is the third most populous country after China and India.

As a result, the U. GDP per capita allows you to compare the prosperity of countries with different population sizes. The countries with the highest economic production per person have thriving economies and few residents.

The World Bank. Bureau of Economic Analysis. However, GDP per capita is not a measure of personal income and using it for cross-country comparisons also has some known weaknesses. In particular, GDP per capita does not take into account income distribution in a country. In addition, cross-country comparisons based on the U.

The table below shows the GDP per capita in current U. Looking for forecasts? FocusEconomics Consensus Forecasts cover approx. Get Details. The economy contracted a heavy 4. Read more. According to a preliminary reading, GDP growth lost momentum in the third quarter, falling to 7. Major Economies. South-Eastern Europe. Sub-Saharan Africa.

Central America. Trading Economics members can view, download and compare data from nearly countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

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