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Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

GDP Per Capita

What is GDP Per Capita?

GDP per capita is a country's gross domestic product (GDP) per person. Essentially, this measures the amount of goods and sales a country produced per person, on average.

How to Calculate GDP Per Capita

The formula for GDP per capita is:

GDP per capita =Gross Domestic Product / Population

For example, the US GDP per Capita is around $20 trillion in gross domestic product (2018) for a population of more than 300 million people. Using these numbers, that would mean the US GDP per capita is:

GDP per capita = $20,000,000,000,000 / 300,000,000 = $66,667

In other words, the average person from the US produced around $66,667 in goods and services during the year.

How is GDP Per Capita by Country Analyzed?

Gross domestic product is a macroeconomic measure of output. This measure helps analysts and investors get a better feel for whether a country is more or less productive and in turn whether it is headed for a recession or a bull market.

The per capita measure of GDP indicates whether the country's workforce is generally becoming more or less productive -- that is, whether the country's workforce is efficiently producing goods and services that consumers want.