How does GDP per capita work?

The Gross Domestic Product per capita, or GDP per capita, is a measure of a country's economic output that accounts for its number of people. It divides the country's gross domestic product by its total population.

What are the different uses of per capita?

The most common uses of per capita are gross domestic product (GDP) per capita and income per capita. For national economic indicators, such as gross domestic product (GDP) or gross national product (GNP), the total figure is certainly of interest.

What is nominal GDP per capita?

“Nominal” means GDP per capita is measured in current dollars. If you want to compare GDP per capita between countries, you have to use a metric called purchase power parity. It creates parity between economies by comparing a basket of similar goods.

What is a per capita metric?

Per capita is used when comparing a certain economic metric to a population. The most common instances of per capita are gross domestic product (GDP) per capita and income per capita. Per capita information provides more granular data than just aggregate information.