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.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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