REAL GDP PER CAPITA

What is GDP Per Capita?

Also known as GDP per person/head, it is the measurement of income generated in a nation's economy divided amongst the number of individuals living in it.

The general equation applied to calculate this variable is as follows:

GDP Per Capita = GDP/ population

This factor is often used as a comparison between two or more countries to determine each's own efficiency in expenditure according to each components of GDP (Consumption, Investment, Government spending, and Foreign trade). However, one should not assume that GDP Per Capita is the indicator of an economy's "well-being". Some countries may have a fewer number of people in their population, yet their values of goods and services are positively increasing. Also, many nations who HAVE high GDP Per Capita, may suffer from a wide economic gap between the wealthy and poor, and often the calculation of this tends to be inaccurate.

What does the graph demonstrate?

The trends of this graph look very similar to the rate of U.S. GDP on the previous tab. Consumers especially, determine the rate of succession or interruption of GDP in the long run.