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. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Expenditure Method

    A method for calculating GDP that totals consumption, investment, ...
  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. Labor Productivity

    A measurement of economic growth of a country. Labor productivity ...
Related Articles
  1. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  2. Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  3. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  4. Economics

    The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.
  5. Economics

    Explaining Economic Indicators

    Investors use economic indicators to gauge investment opportunities and judge the overall health of an economy.
  6. Economics

    Economic Indicators: Reading Between the Lines

    On the surface, economic indicators are sending mixed signals, but what's brewing beneath the surface?
  7. Fundamental Analysis

    How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  8. Economics

    3 Economic Challenges Russia Faces in 2016

    Learn about the three largest challenges facing the Russian economy in 2016. How will low oil prices and high inflation impact the Russian economy?
  9. Economics

    The World’s Top 10 Economies

    The world’s largest economy is the United States in terms of nominal GDP.
  10. Investing News

    4 Ways to Short China with ETFs

    If the Chinese economy proves to be a house of cards, here are a few ways to trade it.
RELATED FAQS
  1. Is Russia a developed country?

    Though it once reigned alongside the United States as a world superpower, Russia is not classified as a developed country ... Read Full Answer >>
  2. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  3. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  4. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>
  5. Is Greece a developed country?

    Greece is a developed country by most meaningful metrics. However, its financial struggles have been well documented in the ... Read Full Answer >>
  6. Is Taiwan a developed country?

    As of 2015, the CIA World Factbook has yet to add Taiwan to its list of developed countries. However, many organizations, ... Read Full Answer >>
  7. Is the Philippines a developed country?

    The Philippines is not a developed country. The nation falls behind on every one of the most common metrics used by economist ... Read Full Answer >>
  8. Is South Korea a developed country?

    South Korea is widely regarded as a developed country. A few index providers still classify the country as developing, but ... Read Full Answer >>
  9. Is Turkey a developed country?

    There are no hard-and-fast criteria for what defines developed countries. Different organizations set different standards ... Read Full Answer >>
  10. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>
  11. Is Australia a developed country?

    Australia is one of the most developed countries in the world. The nation's per capita gross domestic product (GDP), one ... Read Full Answer >>
  12. Is Nigeria a developed country?

    Nigeria is not a developed country by any reasonable standard. The country's per capita gross domestic product (GDP) is much ... Read Full Answer >>
  13. Is the Netherlands a developed country?

    The Netherlands is a developed country. A developed country is typically defined as one exhibiting economic security and ... Read Full Answer >>
  14. Is Mexico an emerging market economy?

    Mexico meets all the criteria of an emerging market economy. The country's gross domestic product, or GDP, per capita beats ... Read Full Answer >>
  15. Has increased data usage affected the telecommunications sector in developed countries?

    The big news in the telecommunications sector for developed nations is bigger, cheaper data. Global data traffic is expected ... Read Full Answer >>
  16. What effect has the sustainable growth rate had on Medicare disbursements?

    In 1997, Congress hailed the success of bipartisan Medicare reform with the Balanced Budget Act. Part of that act established ... Read Full Answer >>
  17. What are the key metrics of the human development index (HDI)?

    The key metrics of the standard U.N. Human Development Index (HDI) are health, education and income. These metrics were chosen ... Read Full Answer >>
  18. Why have most modern nations evolved into free market economies?

    Most modern nations have elements of a free market economy but are more correctly characterized as mixed economies. A mixed ... Read Full Answer >>
  19. What is the formula for calculating gross national product (GDP)?

    Gross national product (GNP) is a slightly modified version of gross domestic product (GDP). The GNP of a country is equal ... Read Full Answer >>
  20. What impact does industrialization have on wages?

    Industrialization is the transformation of a society from an agrarian economy to an industrial one. Industrialization has ... Read Full Answer >>
  21. Which countries are most productive in terms of GDP?

    If you are measuring productivity based on Gross Domestic Product (GDP), the ten most productive countries in the world are, ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center