What is the Difference Between GDP and GDP per Capita?

The main difference between GDP and GDP per capita lies in the way they measure the economic output of a country. Here are the key differences:

• Gross Domestic Product (GDP): GDP is the total value of goods and services produced by resident producers in an economy, regardless of the allocation to domestic and foreign claims. It measures the overall economic output of a country and is widely used to gauge the economic health of a nation.
• Gross Domestic Product per Capita (GDP per capita): GDP per capita is a metric that breaks down a country's GDP per person. It is calculated by dividing the GDP of a nation by its population. This measure provides a more granular understanding of a country's economic output per person, which can be used to compare prosperity levels between countries with different population sizes.

In summary, GDP measures the total economic output of a country, while GDP per capita measures the economic output per person, providing a more accurate representation of a country's prosperity relative to its population size.

Comparative Table: GDP vs GDP per Capita

Gross Domestic Product (GDP) and GDP per capita are both measures of a country's economic performance, but they differ in the way they account for population. Here is a comparison between the two:

It is essential to consider both GDP and GDP per capita when analyzing a country's economy, as they provide different insights into its economic performance and standard of living.