Formula to Calculate GDP Per Capita of the Country
The formula for calculating GDP per capita is represented as follows:
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- GDP per capitaGDP Per CapitaGDP per capita is a parameter that breaks down the GDP of a country to measure the economic prosperity of the citizens by simply dividing the GDP by the total population of that country.read more can measure a nation’s economic output, accounting for its population and the person’s count.The formula divides the nation’s Gross Domestic ProductGross Domestic ProductGDP or Gross Domestic Product refers to the monetary measurement of the overall market value of the final output produced within a country over a period.read more, the GDP, the number of people, and the nation’s total population. That would make a better measurement of a nation’s standard of living.Further, if one is looking at just one point in time, then Nominal GDP can be used. And, if one compares the timeline, then Real GDP would make better sense.
Examples
Example #1
Country X is a growing small economy. Last year the country reported its GDP as around $400 million, and the country’s population, as per the previous census report, is 200,000. Therefore, you must calculate GDP per capita or country X.
Solution
Use the below-given data for the calculation of GDP per capita.
- GDP of country X: 400,000,000The population of country X: 200,000
Calculation of GDP per capita can be done as follows:
= $400,000,000 / 200,000
GDP per capita will be –
- GDP per capita = $2,000
Therefore, the GDP per capita of country X is $2,000.
Example #2
Country MCX is trying to figure out the country’s GDP and then wants to know the GDP and per capita of the country. The statistics StatisticsStatistics is the science behind identifying, collecting, organizing and summarizing, analyzing, interpreting, and finally, presenting such data, either qualitative or quantitative, which helps make better and effective decisions with relevance.read more department of the government has provided them with the below data:
The nation’s elections are due next year. The President is concerned if they made growth in GDP per capita. As per the last census conducted, the country’s population is 3,237,450,050. It is estimated that the population since the previous census has grown by 3% and 5% in 2017 and 2018, respectively.
Based on available information, you must estimate the GDP per capita.
The GDP figure is not mentioned directly here. Therefore, we shall calculate the country’s GDP by using the expenditure method in which all the investment is added, and only imports are deducted.
The GDP of the country in 2017 is as follows:
- = (130000000+465500000+6650000000)+3325000000-997500000The GDP of the country =10773000000.
The GDP of the country in 2018 is as follows:
- = (1945790000+742938000+9021390000)+4554917500-1180740750The GDP of the country = 15084294750.
Further, there has also been growth in the population of the country.
Based on the last census count, the population has grown by 3% and 5% in 2017 and 2018.
The population of the country in 2017 is as follows:
- =3237450050*3%The population of the country in 2017 = 97123501.50.
The population of the country in 2018 is as follows –
- =3237450050*5%The population of the country in 2018 = 161872502.50.
Therefore, the calculation of GDP per capita for 2017 is as follows:
=10773000000/97123501.50
GDP per capita will be –
- GDP per capita = 110.92.
Therefore, the calculation of GDP per capita for 2018 is as follows:
=15084294750/161872502.50
- GDP per capita = 93.19.
Therefore, the GDP per capita of the country MCX has diminished since 2017.
Example #3
As per the data available on worldpopulationview.com, the GDP and the population of the various countries are available below:
You must calculate the GDP per capita and comment upon the same.
Therefore, the calculation of GDP per capita is as follows:
= 21410230000000/329064917
- GDP per capita = 65063.85.
Similarly, we can calculate GDP per capita for other countries as shown below:
We can observe that the population of India and China is more. Hence, their GDP per capita depicts a low figure. Further, the GDP of India is more than the United Kingdom. But again, due to its oversize population, it is showing that India is way behind the UK, which does not appear when only GDP is compared. The USA is doing well in absolute GDP and per capita as well. Japan has the advantage of a lower population. Hence, its per capita is good.
Recommended Articles
This article has been a guide to the GDP Per Capita Formula. Here, we discuss the calculation of GDP per capita along with practical examples and templates. You can learn more about Economics from the following articles: –
- Calculate GDP DeflatorCalculate GDP DeflatorThe GDP deflator measures the change in the annual domestic production due to changes in price rates in the economy. Hence, it measures the change in nominal GDP and real GDP during a particular year calculated by dividing the nominal GDP with the real GDP and multiplying the resultant with 100.read moreReal GDP Per CapitaReal GDP Per CapitaThe real GDP per capita calculates a country’s total economic output per person after adjusting inflation. Real GDP per capita is calculated by dividing the country’s real GDP by the country’s population. Real GDP per capita = Nominal GDP/(1+ Deflator)/Populationread moreCompare – GDP vs GNPCompare - GDP Vs GNPGross domestic product (GDP) is a measure of national production for the entire year, whereas gross national product (GNP) is a measure of annual output or production by citizens of a country, whether in their home country or abroad, and thus the country’s border is not taken into account in GNP calculation.read moreCalculate Real GDPCalculate Real GDPReal GDP can be described as an inflation-adjusted measure that reflects the value of services and goods produced in a single year by an economy, expressed in the prices of the base year, and is also known as “constant dollar GDP” or “inflation corrected GDP.“read more