What does GDP per capita measure?

GDP per capita measures the average economic productivity per person in a country. It is calculated by dividing a country's gross domestic product (GDP) by its total population. This metric reflects the amount of economic output available on average for each individual, providing insight into the standard of living and economic health of a country.

When looking at overall economic productivity, GDP by itself offers an aggregate figure that does not account for the number of people in the country. By focusing on GDP per capita, we can better understand how wealth is distributed among the population. A high GDP per capita typically indicates a higher standard of living, while a low GDP per capita might suggest economic challenges or lower living standards.

This measurement is particularly useful for comparing economic performance across different countries, as it adjusts for population size, allowing for more meaningful comparisons regarding prosperity and economic well-being.