Table of Contents
- What Is GDP Per Capita?
- Key Takeaways
- How GDP Per Capita Works
- GDP Per Capita vs. GDP
- Implications of GDP Per Capita
- Countries With the Highest GDP Per Capita
- Countries With the Lowest GDP Per Capita
- Global Growth Projections
- How Is GDP Per Capita Calculated?
- Which Countries Have the Highest GDP Per Capita?
- What’s the Difference Between GDP Per Capita and Per Capita Income?
- Which Country Has the Lowest GDP Per Capita?
- What Country Has the Highest Population?
- The Bottom Line
What Is GDP Per Capita?
Let me explain GDP per capita to you directly: it's an economic metric that takes a country's gross domestic product and divides it by the population to show output per person. As someone analyzing economies, I use this to measure prosperity based on growth. You'll notice that countries with higher GDP per capita are usually industrial, developed ones with smaller populations.
Key Takeaways
Understand this: GDP per capita represents a country's economic output per individual. You calculate it by dividing total GDP by population. Economists like me rely on it alongside overall GDP to evaluate and compare economic prosperity across nations. Remember, both GDP and population heavily influence this figure. Typically, small rich countries and advanced industrial ones lead in GDP per capita.
How GDP Per Capita Works
GDP per capita is a worldwide tool economists use to assess national prosperity through economic growth. You have options for analyzing wealth, but this one is the most common because its data is tracked globally, making calculations straightforward. Income per capita is another option, but it's not as widely applied.
At its core, GDP per capita tells you the economic production value per citizen. It also acts as a straightforward measure of national wealth, since market value per person indicates prosperity.
GDP Per Capita vs. GDP
GDP itself measures a country's overall economic productivity, showing the market value of goods and services produced. In the US, the Bureau of Economic Analysis reports it quarterly, and I watch those figures for growth insights to gauge economic health.
Economists compare domestic GDP to others for productivity insights. Legislators use it for fiscal decisions, and central bankers for monetary policy. You should analyze GDP per capita alongside GDP, as it ties into both output and population—understand how each affects per capita growth.
Implications of GDP Per Capita
Governments use GDP per capita to track economic growth relative to population. On a national level, it reveals population's impact on the economy. Examine each variable's role to see if the economy is expanding or shrinking compared to population.
If GDP per capita grows with stable population, it might come from tech advances boosting productivity. Technology can transform rankings without population changes. Some high per capita countries have small populations but self-sufficient economies from abundant resources.
Negative growth happens if population rises faster than GDP, which isn't common in established economies where even slow growth outpaces population. But in low-GDP countries with fast population increases, like some in Africa, living standards can erode.
Both GDP and population factor in, so top GDP countries may not top per capita. Global per capita dropped 1.9% in 2023 per World Bank. Yet China and India achieved high growth despite huge populations, thanks to reforms in the late 20th century.
Countries With the Highest GDP Per Capita
Here are the top 10 for 2025 per IMF: Luxembourg at $141,080, Switzerland at $111,720, Ireland at $107,240, Singapore at $93,960, Norway at $90,320, Iceland at $90,110, United States at $89,680, Macao SAR at $84,280, Qatar at $72,760, Denmark at $71,970. Many have small populations and are energy exporters, financial hubs, or business leaders.
Countries With the Lowest GDP Per Capita
The bottom 10 for 2025 per IMF: Burundi at $156.5, South Sudan at $334.14, Malawi at $448.29, Yemen at $455.46, Central African Republic at $548.83, Madagascar at $575.74, Sudan at $594.9, Mozambique at $684.97, Congo at $743.65, Niger at $752.15.
Global Growth Projections
The IMF forecasts 3.3% global GDP growth in 2025 and 2026, driven by US revisions offsetting declines elsewhere, plus falling inflation. Advanced economies will grow from 1.7% in 2024 to 1.9% in 2025 and 1.8% in 2026. Developing ones stay around 4.2% to 4.3%.
How Is GDP Per Capita Calculated?
Divide the country's GDP by its population. This reflects the standard of living.
Which Countries Have the Highest GDP Per Capita?
Industrialized, developed ones like Luxembourg, Switzerland, and Ireland top the list in 2025 per IMF.
What’s the Difference Between GDP Per Capita and Per Capita Income?
GDP per capita is economic output per person for prosperity measurement. Per capita income is earnings per person for standard of living assessment.
Which Country Has the Lowest GDP Per Capita?
Burundi, followed by South Sudan and Malawi, per 2025 IMF data.
What Country Has the Highest Population?
India, with 1.46 billion in 2025 per World Population Review.
The Bottom Line
GDP per capita is a key metric for average prosperity and well-being, factoring in population unlike pure GDP, enabling easy cross-country comparisons.
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