Explanation :The concept of GDP per capita is used as a competitive measurement to compare countries’ economies. The GDP per capita is calculated by using the Gross Domestic Product figure (real or nominal) and dividing it by the country’s total population. It is assumed that a high GDP per capita means a high standard of living but there are many other factors that must be taken into account when evaluating the competitiveness of a given economy. GDPs are normally calculated by using the country’s domestic currency, but when it comes to comparisons the standard currency is the US$. This means that currency values play an important role in comparing GDP per capita of different countries. By 2015, Qatar was the country with the highest GDP per capita, followed by Luxembourg. And by that year, the country with the lowest GDP per capita was Somalia, followed by the Central African Republic.
In a nutshell :
- Per capita gross domestic product (GDP) measures a country's economic output per person and is calculated by dividing the GDP of a country by its population.
- Per capita GDP is a global measure for gauging the prosperity of nations and is used by economists, along with GDP, to analyze the prosperity of a country based on its economic growth.
- Small, rich countries and more developed industrial countries tend to have the highest per capita GDP.