Gross Domestic Product (GDP) per capita is the abbreviation for Gross Domestic Product (GDP) per capita (per person). It is calculated by simply dividing total GDP (see definition of GDP) by the population. In international markets, per capita GDP is usually stated in local current currency, local constant currency, or a standard unit of currency, such as the US dollar (USD).
GDP per capita is a key metric of economic success and a helpful unit for comparing average living standards and economic well-being across countries. However, GDP per capita is not a measure of personal income, and it has certain well-known flaws when used for cross-country comparisons. GDP per capita, in particular, does not account for a country’s income distribution. Furthermore, cross-country comparisons based on the US dollar might be skewed by exchange rate movements and don’t always reflect the purchasing power of the countries under consideration.
For the last five years, the table below illustrates GDP per capita in current US dollars (USD) by country.
Are you looking for a forecast? The FocusEconomics Consensus Forecasts for each country cover over 30 macroeconomic indicators over a 5-year projection period, as well as quarterly forecasts for the most important economic variables. Find out more.
Why do we keep a data log?
In charts and graphs, there are two basic reasons to employ logarithmic scales. The first is to respond to large-value skewness, which occurs when one or a few points are significantly larger than the rest of the data. The second option is to display % change or multiplying factors. I’ll start by explaining what logarithms are. Then I’ll go over each of these reasons in greater depth and provide instances.
Logs are just another way of writing exponential equations that allows you to separate the exponent on one side of the equation, if you remember your school algebra.
The second equation is
What is real GDP per capita?
Real GDP per capita is calculated by dividing a country’s total economic output by its population and adjusting for inflation. It’s used to compare living standards between countries and throughout time.
Is GDP calculated per capita?
The Gross Domestic Product (GDP) per capita is calculated by dividing a country’s GDP by its total population. The table below ranks countries throughout the world by GDP per capita in Purchasing Power Parity (PPP), as well as nominal GDP per capita. Rather to relying solely on exchange rates, PPP considers the relative cost of living, offering a more realistic depiction of real income disparities.
In Excel, how do you compute GDP per capita?
Consider a country with a $10 trillion real GDP in 2018 and a population of 250 million people as of December 31, 2018. Calculate the country’s GDP per capita for the year 2018.
As a result, the country’s GDP per capita for the year 2018 was $40,000.
GDP Per Capita Formula Example #2
Take, for example, a country that has the following data for the year 2018. Calculate the country’s GDP per capita using the information provided.
What is the difference between GDP per capita and purchasing power parity (PPP)?
Based on purchasing power parity, GDP per capita (PPP). PPP GDP stands for buying power parity GDP, which is gross domestic product translated to foreign currencies using purchasing power parity rates. The purchasing power of an international dollar is equal to that of the US dollar in terms of GDP.
What exactly does per capita imply?
The term “per capita” comes from the Latin phrase “by head.” In statistical observances, per capita refers to the average per person and is sometimes used instead of “per person.”