GDP per capita is an economic metric that represents the average economic output or income produced per person in a country. It is calculated by dividing the total Gross Domestic Product (GDP) of a country by its mid-year population. GDP itself is the total market value of all final goods and services produced within a country in a given period, usually a year
. GDP per capita is used to gauge the average prosperity or economic well- being of the people in a country. It provides a way to compare economic performance and living standards across countries with different population sizes. Higher GDP per capita generally indicates a higher average standard of living, though it is not a direct measure of personal income or wealth distribution
. In summary:
- Definition: GDP per capita = Total GDP รท Population
- Purpose: Measures average economic output or prosperity per person
- Use: Comparing economic well-being across countries or over time
- Note: It is not the same as average personal income and does not reflect income inequality
This metric helps economists and policymakers understand how wealthy or productive a country is on a per-person basis.
