Per Capita GDP

AAA

DEFINITION of 'Per Capita GDP '

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.

INVESTOPEDIA EXPLAINS '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. Expenditure Method

    A method for calculating GDP that totals consumption, investment, ...
  2. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  3. Nominal GDP

    A gross domestic product (GDP) figure that has not been adjusted ...
  4. Gross Domestic Income - GDI

    The sum of all income earned while producing goods and services ...
  5. Standard Of Living

    The level of wealth, comfort, material goods and necessities ...
  6. Global Recession

    An extended period of economic decline around the world. The ...
Related Articles
  1. Markets

    Great Company Or Growing Industry?

  2. thinkstock|istock
    Economics

    Understanding Supply-Side Economics

  3. Options & Futures

    Explaining The World Through Macroeconomic ...

  4. Economics

    The Importance Of Inflation And GDP

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center