Explore and compare GDP per capita data across over 195 countries worldwide with our indispensable insights from FocusEconomics. Access accurate historical data on GDP per capita in USD terms for various nations, providing a comprehensive view of economic performance over the years 2018, 2019, 2020, 2021, and 2022. This information is valuable for evaluating countries’ economic performances and identifying business opportunities. Our GDP per capita data and forecasts can empower your business with critical insights.
What does GDP mean?
To understand GDP per capita, it is first necessary to understand the concept of GDP, or gross domestic product. GDP includes the total market value of all final goods and services produced in a country in a given time period. It includes private and public consumption, public and private investment, and exports minus imports.
GDP is the most widely used measure of economic activity and is a strong representation of the economic health of a country. However, there are some elements of economic activity that GDP does not encapsulate, including non-market transactions.
What does GDP per capita mean?
GDP per capita stands for Gross Domestic Product (GDP) per capita (per person). It is derived from a straightforward division of total GDP (see definition of GDP) by the population. Per capita GDP is typically expressed in local current currency, local constant currency or a standard unit of currency in international markets, such as the U.S. dollar (USD). At FocusEconomics, we express GDP per capita in USD terms.
GDP per capita is an important indicator of economic performance and a useful unit when making cross-country comparisons of average living standards and economic well being. However, GDP per capita is not a measure of personal income and using it for cross-country comparisons also has some known weaknesses. In particular, GDP per capita does not take into account the income distribution in a country. In addition, cross-country comparisons based on the U.S. dollar can be distorted by exchange rate fluctuations and often don’t reflect the purchasing power in the countries being compared.
Why our reports with GDP per capita data and forecasts are valuable for businesses
Data on GDP per capita is useful for several reasons:
Investment Opportunities
For businesses considering international expansion or investment, GDP per capita is a key indicator. Higher GDP per capita often signifies a more affluent market, making it an attractive destination for investments in sectors like luxury goods or high-end services. Meanwhile, markets which are forecast to have increasing GDP per capita can be ripe business opportunities to capitalise on.
Risk Assessment
GDP per Capita provides a snapshot of consumers’ economic well-being. Businesses can use this information to assess the economic stability of a market, helping them make informed decisions and mitigate risks associated with economic downturns or tightening consumer budgets.
Consumer Understanding
GDP per capita is often correlated with consumer spending patterns; GDP per capita is one economic factor that influences demand for luxury goods, for example. Businesses can anticipate trends in consumer behavior, preferences, and demand by analysing GDP per capita data data and forecasts, enabling more effective product planning and marketing strategies.
