What is the difference between GDP and GDP per capita?

Put simply; GDP per capita accounts for the population of a country, while GDP does not. The per capita figure tells us how prosperous the citizens of a country are. GDP stands for G ross D omestic P roduct . Per capita is a Latin term that means ‘for each person’ or ‘per head.’

How is GDP per capita calculated?

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.

Why is per capita GDP important?

But it had a low per capita GDP, one that was below the world average during its final years of existence, and large sections of its population lived in poverty. In that respect, per capita GDP is an improvement over standard GDP as a measurement tool for the effectiveness of a country's economic policies.