Our World in Data
Summary
GDP per capita is a comprehensive economic indicator that calculates a country's total economic output divided by its population. It helps compare income levels and track economic growth across different regions.
Review
GDP per capita is a critical metric for understanding economic development and living standards, providing insights into the average economic output and income levels of populations worldwide. By converting economic data into constant international dollars, it allows for meaningful comparisons across countries and time periods, accounting for inflation and purchasing power differences.
The indicator reveals stark global economic disparities, with poorest countries experiencing average incomes below $1,000 annually, while wealthy nations have per capita incomes over 50 times higher. This metric is not just a numerical representation but a powerful tool for analyzing economic progress, inequality, and potential development trajectories, making it invaluable for policymakers, economists, and researchers seeking to understand global economic dynamics.
Key Points
- Measures average economic output per person across countries
- Adjusts for inflation and purchasing power differences
- Highlights significant global income inequality