Determining GDP per capita
Gross Domestic Product (GDP) is the most common method of measuring the economic growth (or decline) of a country. It is the total value of all of the goods and services produced by any given country in a given year. Nominal GDP uses numbers that are based on current prices. Real GDP uses numbers that have been adjusted for inflation. If real GDP is calculated on a per capita (per person) basis, two countries with very different populations can be compared. This is how analysts compare the economies of developed nations (such as the United States or Canada) to the economies of developing nations (such as Zimbabwe or Vietnam).
Instructions
1. Find the real GDP of two countries that you would like to compare. Then find the total population of the same countries. The CIA's World Fact Book is the most useful resource to find the information you need. For example, the 2008 (estimated) GDP for the United States was $14.33 trillion and its population was 304.5 million. The 2008 (estimated) GDP for Pakistan was $160.9 billion and its population was 172.8 million.
2. Divide GDP by population to calculate the per capita GDP of a country. Real GDP divided by population equals GDP per capita
3. Make the calculations. For the United States: $14,330,000,000,000 divided by 304,500,000 equals $47,060. For Pakistan: $160,900,000,000 divided by 172,800,000 equals $931. This comparison reveals that the real GDP per capita of the United States is 50.5 times that of Pakistan.
