GDP (gross domestic product) per capita is referred to as the measure of the economic output of a country, which is based on its population.
GDP per capita is calculated by dividing the gross domestic product of a country with its population.
GDP per capita is a measure of the prosperity of a country. It is used as a metric by economists in order to determine the growth of a nation and compare its productivity with other countries on a global scale.
In order to calculate the GDP per capita, the real GDP is taken into account instead of the nominal GDP, as the real GDP includes the inflation rate and therefore, it can be used to compare across years.
The GDP per capita formula can be represented as follows:
GDP per capita = Real GDP/Population
This concludes the discussion on GDP per Capita Formula, which is one of the metrics for measuring the prosperity of a nation, along with GDP. To read more of such interesting concepts, stay tuned to BYJU’S.