In economics, what measure is calculated by dividing a country's GDP by its population?

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In economics, GDP per capita is calculated by dividing a country’s GDP by its population.

The measure expresses average economic output per person. It is found by taking the value of final goods and services produced within a country during a specified period and dividing it by the number of people living there. Economists and international organizations use it to compare broad differences in economic output across countries or across time.

GDP per capita is an average, not a measure of what each person actually earns. It does not show how income is distributed, and it leaves out many factors affecting living standards, including unpaid household work, leisure, health, safety, and environmental quality. A country can have high GDP per capita alongside substantial inequality.

Comparisons may use nominal GDP per capita, calculated at current exchange rates, or purchasing-power-parity GDP per capita, which adjusts for differences in local prices. Real GDP per capita also removes the effect of inflation when comparing changes over time. These versions answer related but different questions.

Source: Wikipedia · fact-checked Sept. 2026

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