Quick Definition

Per Capita GDP measures the average economic output per person in a specific area, typically a country, by dividing the total GDP by the population.

Formula

Examples

• 1In 2022, the United States had a Per Capita GDP of approximately $70,000, indicating the average economic output per person.
• 2A comparison between Norway and India shows Norway with a higher Per Capita GDP, reflecting its higher standard of living.
• 3During economic recessions, Per Capita GDP may decrease as overall economic output falls while the population remains stable or grows.
• 4Developing countries often have lower Per Capita GDP compared to developed countries, highlighting economic disparities.

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