What Is GDP Per Capita?

Gross domestic product (GDP) per capita is an economic metric that breaks down a country’s economic output to a per-person allocation. Economists use GDP per capita to determine ⭕the prosperity of countries based on their economic growth. Countries with a higher GDP per capita tend to be those that are i🤡ndustrial and developed and have smaller populations compared to others.

How GDP Per Capita Works

Gross domestic product per capita is a global ওmeasure🍰ment used by economists to gauge the prosperity of nations based on economic growth.

There are a few ways to analyze a country’s wealth and prosperity. GDP per capita is the most universal because its components are regularly tracked on a global scale, providing ease of calculation and usage. 澳洲幸运5官方开奖结果体彩网:Income per capita is another measure for global prosperity analysis, but it’s less broadly used.

The most basic interpretation of GDP per capita shows how much economic production value can be attributed to each individual citizen. Alternatively, GDP per capita translates to a measure of national wealth because GDP market value per person also readily serves as a prosperity measure.

GDP Per Capita vs. GDP

GDP itself is the primary measure of a country’s economic productivity. A country’s GDP shows the market value of the goods and services it produces. The 澳洲幸运5官方开奖结果体彩网:Bureau of Economic Analysis (BEA) re💜ports GDP every quarter in the United States. Economists watch this quarterly report closely for the quarter-over-quarter and annual growth figures that can assist them in analyzing the overall health of the econo🍎my.

Economists also use GDP for insight into how their domestic productivity compares to the productivity of other countries. Legislators use GDP figures when making 澳洲幸运5官方开奖结果体彩网:fiscal policy decisions. GDP can also influence central bankers when they’re deciding the course of future 澳洲幸运5官方开奖结果体彩网:monetary policy.

GDP per capita is often analyzed along with GDP. It relates to both a country’s GDP and its population, so it can be important to understand how each factor affects GDP per capita growth.

Implications of GDP Per Capita

Governments can use GDP per capita to understand how their economies are growing along with their 澳洲幸运5官方开奖结果体彩网:populations. GDP per capita analysis on a national level 𒆙can provide insights in꧟to a country’s domestic population influence.

Look at each varia🦂ble’s contribution to the per capita figure to understand how an economy is growing or contracting relative to its population. There can be several numerical relationships that affect GDP per capita.

Growth can potentially be the result of technological advances that increase productivity with no ch🐲ange in population if a country’s GDP per capita is growing while the population level remains stable. Technology can be a revolutionary factor that helps countries increase their per capita rankings even as population figures are unchanged or decline.

Negative GDP Per Capita Growth

A nation may have consistent economic growth but GDP per capita growth will be negative if its population is growing faster than its GDP. This isn’t a problem for most established economies because even a tepid pace of economic growth can still outpacඣe their population grow𓃲th rates.

However, countries with existing low levels of GDP per capita, such as nations in Africa, and rapidly increasing populations combined with little GDP growth can experience a steady erosion of living standards.

GDP and Population Growth

Both GDP and population are 🐼factors in the p🐈er capita equation, so countries with the highest GDP may or may not have the highest GDP per capita.

Global GDP per capita decreased by an average of 1.9% in 2023 (latest information), according to the latest 澳洲幸运5官方开奖结果体彩网:World Bank data.

Economies such as those of China and India have achieved GDP per capita growth rates well above the global average in the 21st century despite their populations of over a billion people each. This is thanks to the financial reforms initiated by China in the late 1970s and by India in the mid-1990s.

Countries With the Highest GDP Per Capita

These are the 10 countries with the highest GDP per capita in 2025, according to the 澳洲幸运5官方开奖结果体彩网:International Monetary Fund (IMF).

Many of the countries on this list have relatively small populations. 澳洲幸运5官方开奖结果体彩网:Luxembourg has one of the smallest with about 688,000 people. Most of these small-population countries are energy exporters, regional financial centers, and export business powerhouses.

Countries With the Lowest GDP Per Capita

Here are the 10 countries with the lowest GDP per capita in 2025, according to the IMF.

Global Growth Projections

The IMF provides a regular outlook on the global growth of GDP. This growth can affect the outlook for👍 the growth of GDP per capita.

The IMF expects global GDP growth of 3.3% in 2025 and 2026, primarily due to upward revisions in the U.S. economy offsetting declines in other major economies, as well as declining global headline inflation.

Advanced economies are expected to see a slight acceleration in growth, from 1.7% in 2024 to 1.9% in 2025 to 1.8% in 2026. While growth rates in advanced economies will be lower than those in developing economies, developing economies will see flat to modest growth, from 4.2% in 2024 to the same in 2025 and 4.3% in 2026.

The Bottom Line

GDP per capita is a popular metric used to measure the average prosperity and well-being of a country.⛦ It takꦦes populations into account, unlike some other measures of economic productivity, allowing easy comparisons between countries with different populations.