GDP Per Capita Formula

Formula to Calculate GDP Per Capita of the Country

GDP per capita formula calculates the average of the nation’s economic output when divided by the total population. In other words, it is the equal apportioning of the gross domestic product for each resident to represent the country’s standard of living.

The formula for calculating GDP Per Capita is represented as follows

GDP Per Capita = GDP of the Country / Population of that Country
GDP-Per-Capita-Formula

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: GDP Per Capita Formula (wallstreetmojo.com)

Examples

You can download this GDP Per Capita Formula Excel Template here – GDP Per Capita Formula Excel Template

Example #1

Country X is a growing small economy. Last year the country has reported its GDP around $400 million and the population of the country as per the last census report available is 200,000. You are required to calculate GDP per capita or the country X.

Solution

Use below given data for calculation of GDP Per Capita.

  • GDP of Country X: 400000000
  • Population of Country X: 200000

 Calculation of GDP Per Capita can be done as follows:

GDP Per Capita Formula Example 1.1png

= $400,000,000 / 200,000

GDP Per Capita will be –

GDP Per Capita Formula Example 1.2png
  • GDP Per Capita = $2000

Therefore, the GDP per capita of country X is $2000.

Example #2

Country MCX is trying to figure out the GDP of the country and also then wants to know what the GDP is and per capita of the country. The statisticStatisticStatistics is the science behind identifying, collecting, organizing and summarizing, analyzing, interpreting, and finally, presenting such data, either qualitative or quantitative, which helps make better and effective decisions with relevance.read more department of the government has provided them with the below data:

Use below given data for calculation of GDP Per Capita.

Particulars20172018
Private Consumption1330000000.001945790000.00
Gross Investment465500000.00742938000.00
Government Investment6650000000.009021390000.00
Imports997500000.001180740750.00
Exports3325000000.004554917500.00

The elections of the nation are due next year, and the president is concerned if they made growth in GDP per capita? As per the last census conducted, the population of the country is 3,237,450,050. It was estimated that the population since the last census would have grown at 3% and 5% for the year 2017 and 2018 respectively.

Based on available information, you are required to estimate the GDP Per Capita.

Solution

The GDP figure is not mentioned directly here and therefore we shall calculate the GDP of the country first by using the expenditure method in which all the investment is added and only imports are deducted.

GDP of the country for the Year 2017 is as follows

GDP Per Capita Formula Example 2.1png
  • = (130000000+465500000+6650000000)+3325000000-997500000
  • GDP of the Country =10773000000

GDP of the country for the Year 2018 is as follows

GDP Per Capita Formula Example 2.2png
  • = (1945790000+742938000+9021390000)+4554917500-1180740750
  • GDP of the Country = 15084294750

Further, there has been also growth in the population of the country.

The population has grown by 3% and 5% for the year 2017 and 2018 based upon the last census count.

Population of the Country for the Year 2017 is as follows –

GDP Per Capita Formula Example 2.3png
  • =3237450050*3%
  • Population of the Country for the Year 2017 = 97123501.50

Population of the Country for the Year 2018 is as follows –

Example 2.4png
  • =3237450050*5%
  • Population of the Country for the Year 2018 = 161872502

Therefore, calculation of GDP Per Capita for the Year 2017 is as follows

 Example 2.5png

=10773000000/97123501.50

GDP Per Capita will be –

Example 2.6png
  • GDP Per Capita = 110.92

Therefore, calculation of GDP Per Capita for the Year 2018 is as follows

GDP Per Capita Formula Example 2.7png

=15084294750/161872502.50

GDP Per Capita will be –

 Example 2.8png
  • GDP Per Capita = 93.19

Therefore, the GDP per capita of country MCX has diminished from the year 2017.

Example #3

As per the data available on the worldpopulationview.com, the GDP and the population of the various countries are available per below:

Use below given data for calculation of GDP Per Capita.

ParticularsUSAChinaJapanIndiaUnited Kingdom
GDP2141023000000015543710000000536222000000031552300000003022580000000
Population3290649171433783686126860301136641775467530172

You are required to calculate the GDP Per Capita and comment upon the same.

Solution

Therefore, the calculation of GDP Per Capita is as follows

 Example 3.1png

= 21410230000000/329064917

GDP Per Capita will be –

GDP Per Capita Formula Example 3.2png
  • GDP Per Capita = 65063.85

Similarly, we can calculate GDP Per Capita for other countries as shown below

Example 3.4png

It can be observed that the population of India and China is more and hence their GDP per capita is depicting a low figure. Further, the GDP of India is more than the United Kingdom but again due to its oversize population, it’s showing that India is way behind than UK which doesn’t appear when only GDP is compared. The USA is doing well in absolute GDP and per capita as well. Japan is having the advantage of a lower population and hence it’s per capita is good.

Recommended Articles

This has been a guide to GDP Per Capita Formula. Here we discuss how to calculate GDP per capita along with practical examples and template. You can learn more about economics from the following articles –