GDP Per Capita
Definition
Gross Domestic Product divided by total population. GDP measures the total value of all goods and services produced within a country's borders in a year. Dividing by population gives a per-person measure of economic output.
Why It Matters
GDP per capita is the standard measure for comparing economic development across countries. It is used by the World Bank to classify countries by income level and by investors to assess market potential.
How It's Measured
National statistical agencies calculate GDP using production, income, or expenditure methods. The World Bank reports GDP per capita in current US dollars and purchasing power parity (PPP) terms.
Current Value
US: approximately $80,000; Luxembourg (highest): approximately $130,000
Related Terms
Frequently Asked Questions
Gross Domestic Product divided by total population. GDP measures the total value of all goods and services produced within a country's borders in a year. Dividing by population gives a per-person measure of economic output.
GDP per capita is the standard measure for comparing economic development across countries. It is used by the World Bank to classify countries by income level and by investors to assess market potential.
National statistical agencies calculate GDP using production, income, or expenditure methods. The World Bank reports GDP per capita in current US dollars and purchasing power parity (PPP) terms.