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Gdp per capita

The U.S. economy has the largest GDP in the world, by a considerable amount. The United States is also a populous country; in fact, it is the third largest country by population in the world, although well behind China and India. So is the U.S. economy larger than other countries just because the United States has more people than most other countries, or because the U.S. economy is actually larger on a per-person basis? This question can be answered by calculating a country’s GDP per capita    ; that is, the GDP divided by the population.

GDP per capita  =  GDP/population

The second column of [link] lists the GDP of the same selection of countries that appeared in the previous Tracking Real GDP over Time and [link] , showing their GDP as converted into U.S. dollars (which is the same as the last column of the previous table). The third column gives the population for each country. The fourth column lists the GDP per capita. GDP per capita is obtained in two steps: First, by dividing column two (GDP, in billions of dollars) by 1000 so it has the same units as column three (Population, in millions). Then dividing the result (GDP in millions of dollars) by column three (Population, in millions).

(Source: http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/index.aspx)
Gdp per capita, 2013
Country GDP (in billions of U.S. dollars) Population (in millions) Per Capita GDP (in U.S. dollars)
Brazil 2,246.00 199.20 11,172.50
Canada 1,826.80 35.10 52,037.10
China 9,469.10 1,360.80 6,958.70
Egypt 271.40 83.70 3,242.90
Germany 3,636.00 80.80 44,999.50
India 1,876.80 1,243.30 1,509.50
Japan 4,898.50 127.3 38,467.80
Mexico 1,260.90 118.40 10,649.90
South Korea 1,304.47 50.20 25,975.10
United Kingdom 2,523.20 64.10 39,371.70
United States 16,768.10 316.30 53,001.00

Notice that the ranking by GDP is different from the ranking by GDP per capita. India has a somewhat larger GDP than Germany, but on a per capita basis, Germany has more than 10 times India’s standard of living. Will China soon have a better standard of living than the U.S.? Read the following Clear It Up feature to find out.

Is china going to surpass the united states in terms of standard of living?

As shown in [link] , China has the second largest GDP of the countries: $9.5 trillion compared to the United States’ $16.8 trillion. Perhaps it will surpass the United States, but probably not any time soon. China has a much larger population so that in per capita terms, its GDP is less than one fifth that of the United States ($6,958.70 compared to $53,001). The Chinese people are still quite poor relative to the United States and other developed countries. One caveat: For reasons to be discussed shortly, GDP per capita can give us only a rough idea of the differences in living standards across countries.

The high-income nations of the world—including the United States, Canada, the Western European countries, and Japan—typically have GDP per capita in the range of $20,000 to $50,000. Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have GDP per capita in the range of $6,000 to $12,000. The low-income countries in the world, many of them located in Africa and Asia, often have GDP per capita of less than $2,000 per year.

Key concepts and summary

Since GDP is measured in a country’s currency, in order to compare different countries’ GDPs, we need to convert them to a common currency. One way to do that is with the exchange rate, which is the price of one country’s currency in terms of another. Once GDPs are expressed in a common currency, we can compare each country’s GDP per capita by dividing GDP by population. Countries with large populations often have large GDPs, but GDP alone can be a misleading indicator of the wealth of a nation. A better measure is GDP per capita.


Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.

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In 1980, Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?

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The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 20 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in U.S. dollars?

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Questions & Answers

substitutes and complements
Amman Reply
account for persistent increase in lnflation
niwahereza Reply
what is opportunity cost
Adebowale Reply
opportunity cost reffered to as alternative foregone when choice is made
government measures to control inflation?
Formu Reply
control populationk growth rate by using family planning to reduce faster increase of people than job creation
how do we calculate the firm's profit maximizing output in the short run given marginal cost ,average cost and average variable costs?
Nomuhle Reply
what is employment?
Ahmarh Reply
what is meant by broadening the tax base?
Fiona Reply
What is scarcity.
Npoanlarb Reply
when there is adequate resources
the represent inadequacy of resources relative to the needs of individuals
scarcity is the unavailability of resources to attain unlimited wants and needs of people
for exam land and money
hi negi
Scarcity in economics means resources are limited supply or insufficient to satisfy all human wants.
scarcity means limited resources
why our wants are limited
Npoanlarb Reply
nooo want is unlimited but resources are limited
and do to that there occurs scarcity and we have to make choice in order to have what we need if need be I will explain more
our wants are not limited but rather the resources
as we know that there are two principle of microeconomics scarcity of resources and they have alternative uses...
yes .....
because our resources are limited./we have a limited resources.
our wants are not limited. because always the desire for something always arises. our means are rather limited and our wants are unlimited
because always the desire for...
what is demand
Thank Reply
demand is something wt we called in economic theory of demand it simply means if price of product is increase then demand of product will decrease
inverse relationship between demand and price
in microeconomic
demand is what and how much you want and what's your need...
desire is what and how much you want and what's your need..
willingness or mobility of consumer to purchase quantity of good or services
how can one be so with economics even while you have less knowledge in mathematics.
why is it that some products increases everyday by day
Chiamaka Reply
because demand is increase
because demand is increase
but how demand increases?
Because of the Marketing and purchasing power of people.
but how could we know that people's demands have increased everyday by day and how could we know that this is time to produced the products in the market. Is any connection among them
for normal good people demand remain the same if price of product will increase or not
see that some product which increases day by day is comes under normal good which is used by consumer
Seems hot discussing going here
If there are less products demand starts to increase for those products
Economics is really interesting to learn ....
see there is Inferior goods ands normal goods inferior good demand is rarely increase whereas as we talk about normal good demand will absolutely Increase whether price is increase or not
and demand for normal goods increase cause people's income as a while increases time to time
and it might also be that the cost of raw materials are high.
may be
obviously because demand is increasing.....and price is getting low.....
hmmm there is inverse relationship between demand and price
This is because the supply of those products in relation to raw materials are decreasing and they are also necessities. This crate shortage in the market, so sellers will rise the prices of those products.
increase in price of product is as a result of increase in supply... according to law of supply
Importance of economics
Odunayomi Reply
the nature and significance of economics studies
What is demand
Shuaib Reply
deman is amount of goods and services a consumer is willing and able to buy or purchase at a given price.
the willingness and ability of a body to purchase goods nd servicesbis called demand ,so if she/has ability but doesn't have willingness it's not a demand same if she or he has willingness but doesn't has ability it's not a demand too
Demand refers to as quantities of a goods and services in which consumers are willing and able to purchase at a given period of time and demand can also be defined as the desire or willingness and backed by the ability to pay.
What is Choice
Choice refers to the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of possible options. Being free to chose is regarded as a fundamental indicator of economic well being and development.
choice is a act of selecting or choosing from the numerous or plenty wants.
demand is want and it is also what you need and able to afford a particular period of time... because demand changes with time.
Demand refers to the ability of the consumer to pay for a particular product at a given price
this is the desire or willingness to purchase goods and services backed up with the ability to pày
how does consumer make profit
Clifford Reply
by buying goods in bulk.

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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