GDP per capita or Gross domestic product per capita is referred to as the measure of the economic output of a country, which is based on the number of people.
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.
In order to calculate the GDP per capita, the real GDP is taken into account instead of the nominal GDP as real GDP takes into account the inflation rate and hence, it can be used to compare across years.
GDP per capita is often used in conjunction with the GDP to determine the prosperity of a country, as well as for comparing the productivity of a nation with other countries on a global scale.
The GDP per capita formula can be represented as
GDP per capita = Real GDP / Population
This concludes the topic on GDP per capita formula, which is one of the metrics of measuring the prosperity of a nation, along with GDP. To read more of such interesting concepts on Economics for Class 12, stay tuned to BYJU’S.