Per Capita GDP

What is 'Per Capita GDP '

Per capita GDP is a measure of the total output of a country that takes the gross domestic product (GDP) and divides it by the number of people in the country. The per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries. A rise in per capita GDP signals growth in the economy and tends to translate as an increase in productivity.

BREAKING DOWN 'Per Capita GDP '

The gross domestic product (GDP) is one of the primary indicators of a country's economic performance. It is calculated by either adding up everyone's income during the period or by adding the value of all final goods and services produced in the country during the year. Per capita GDP is sometimes used as an indicator of standard of living as well, with higher per capita GDP being interpreted as having a higher standard of living.

RELATED TERMS
  1. Income Per Capita

    A measure of the amount of money that is being earned per person ...
  2. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
  3. Real Gross Domestic Product (GDP)

    An inflation-adjusted measure that reflects the value of all ...
  4. Advanced Economies

    A term used by the International Monetary Fund to describe developed ...
  5. Below Full Employment Equilibrium

    A macroeconomic term used to describe a situation where an economy's ...
  6. Inflationary Gap

    A macroeconomic condition that describes the distance between ...
Related Articles
  1. Markets

    Explaining Income Per Capita

    Income per capita measures the amount of money that’s earned per person in a defined area.
  2. Markets

    Understanding Per Capita

    Per capita is a Latin term that means “by head.”
  3. Markets

    3 Emerging Markets With Bright Prospects

    Learn about emerging and developed Asian markets, their economic machines, and which key factors contribute to real and per capita GDP growth.
  4. Personal Finance

    Where the World's Best Savers Live

    The 10 countries where the world's best savers live.
  5. Markets

    The Correlation Between Education And The Economy

    Is there a correlation between education level and a state's economic output?
  6. Markets

    The World's Top 10 Economies

    A look at the top 10 economies in the world.
  7. Markets

    5 States with the Highest GDP Per Capita

    Learn about the top five states ranked by their real gross domestic product (GDP) per capita as of 2014: Alaska, North Dakota, New York, Connecticut and Wyoming.
  8. Markets

    Economic Growth

    Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period.
  9. Markets

    Calculating the GDP Price Deflator

    The GDP price deflator adjusts gross domestic product by removing the effect of rising prices. It shows how much an economy’s GDP is really growing.
  10. Markets

    Why Investors and Economists Care About GDP

    Gross Domestic Product is the total dollar value of all goods an economy produces over a given time.
RELATED FAQS
  1. Which countries are most productive in terms of GDP?

    Countries around the world constantly compete with one another to be the most innovative and productive. Read to see which ... Read Answer >>
  2. What does the rule of 70 indicate about a country's future economic growth?

    Find out more about the rule of 70, what it measures and what it indicates about a country's future economic growth rate. Read Answer >>
  3. Is Argentina a developed country?

    Learn why Argentina, as of 2015, is not classified as a developed country despite having a qualifying gross domestic product ... Read Answer >>
  4. Is real GDP a better index of economic performance than GDP?

    Learn why real GDP is a better index for expressing the output of an economy, as it takes into account the factors that distort ... Read Answer >>
  5. Is Malaysia a developed country?

    Learn why Malaysia, as of 2015, is not considered a developed country despite having a relatively high level of industrialization. Read Answer >>
  6. Is Mexico a developed country?

    Understand what makes a country a developed country, and learn why Mexico is getting closer to developed status but is not ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center