We explain what GDP per capita is, how it is calculated and what it is used for. In addition, the countries with the highest GDP per capita in the world.
What is GDP per capita?
It is known as Gross Domestic Product per capita (GDP or GDP per capita), or also as Income per capita or Income per capita, a macroeconomic indicator of the productivity Y economic development totals of a country or one region, measured over a period of weather determined (annual or quarterly, generally) and then positions in relation to the number of inhabitants of said country or region.
That is, it is a relationship between the total of productive activity, and the total of individuals who benefit from it. Production is always expressed in monetary units.
GDP per capita is a very common measure in the economic debate, which is often considered as key information regarding the level of development of countries and, consequently, the standard of living of their inhabitants. This is due to the fact that, in theory, the higher GDP per capita, the higher the income people will have and, therefore, the greater the economic possibilities.
However, the use of this indicator for the study of social and cultural issues is often considered restrictive or insufficient, since it does not consider any other variable that is not merely economic. Today it is known that a country can generate a lot of wealth, but distribute it very unevenly among its population and carry very low rates of income. human development (HDI).
To calculate the GDP per capita, the GDP of the country or region studied is divided by its total number of inhabitants, that is:
GDP per cap = GDP / Total number of inhabitants
It should be noted that for this calculation the GDP expressed in nominal terms is usually considered, that is, considering the current prices of the goods and services produced during the period in question.
Countries with the highest GDP per capita in the world
The list of countries with the highest levels of GDP per capita, as measured in 2019 by the International Monetary Fund, are the following:
- 1st - Luxembourg, with $ 113,196 per capita.
- 2nd - Switzerland, with $ 83,716 per capita.
- 3rd - Macao (Chinese Special Administrative Region), with $ 81,151 per capita.
- 4th - Norway, with $ 77,975 per capita.
- 5th - Ireland, with $ 77,771 per capita.
- 6th - Qatar, with $ 69,687 per capita.
- 7th - Iceland, with $ 67,037 per capita.
- 8th - United States, with 65,111 dollars per capita.
- 9th - Singapore, with $ 63,987 per capita.
- 10th - Australia, with $ 53,825 per capita.