3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

US ECONOMY GDP AND GROWTH

GDP Per Capita with its Formula and Country

Comparisons
Why the World's Largest Economies Aren't the Richest

•••

BY KIMBERLY AMADEO Updated March 09, 2018

GDP per capita is a measure of a country's economic output that accounts for its number of people. It
divides the country's gross domestic product by its total population. That makes it the best
measurement of a country's standard of living. It tells you how prosperous a country feels to each of
its citizens.
https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 1/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

GDP per Capita Formula

The formula is GDP/Population. If you’re looking at just one point in time in one country, then you can
use regular, “nominal” GDP divided by the current population.

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 2/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

If you want to compare GDP per capita between countries, you must use the purchasing power
parity GDP. That creates parity, or equality, between countries by comparing a basket of similar
goods. It's a complicated formula that values a country's currency by what it can buy in that country,
not just by its value as measured by its exchange rates. You can nd every country’s purchasing
power parity GDP in the CIA World Factbook.

If you want to compare GDP per capita over time, then you must use real GDP per capita. That
removes the e ects of price changes.

Why the Largest Economies Aren't the Richest per Capita

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 3/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

GDP per capita allows you to compare the prosperity of countries with di erent population sizes.  U.S.
GDP was $19.36 trillion in 2017 according to the CIA World Factbook. But one reason America is so
prosperous is it has so many people. It's the third most populous country after China and India.

The United States must spread its wealth among 327 million people. As a result, the U.S. GDP per
capita is  $59,500. That makes it the 18th most prosperous country per person.

China has the largest GDP in the world, producing $23.12 trillion in 2017. But its GDP per capita was
only $16,600 because it has four times the number of people as the United States.

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 4/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

It's the most populous country in the world, with 1.38 billion people. 

The European Union is the world's second most prosperous economy, at $19.97 trillion. It's an
economy made up of 28 separate countries. Its GDP per capita was only $39,200 because it must
spread the wealth among 516 million people. India's GDP was $9.45 trillion, but spread among its
https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 5/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

1.3 billion people, its GDP per capita was $7,200. Japan's GDP is $5.41 trillion, the fth largest in the
world. Its GDP per capita was $42,700 since it has 126 million people. 

Ten Highest GDP per Capita (2017)

The countries with the highest economic production per person have thriving economies and few
residents. The top 10 GDP/capita are:

1. Liechtenstein – $139,100 (2009 estimate)

GDP Per Capita with its Formula and Country Comparisons
2. Qatar – $124,900

3. Monaco – $115,700 (2015 estimate)

4. Macau - $114,400

5. Luxembourg – $109,100

6. Falkland Islands - $96,200 (2012 estimate)

7. Singapore – $90,500

8. Bermuda – $85,700 (2013 estimate)

9. Isle of Man – $84,600 (2014 estimate)

10. Brunei – $76,700

Two of the top 10 (Qatar and Brunei) are oil exporters with small populations. These countries were
fortunate enough to have a large, abundant natural resource that is not labor intensive to develop.
Since 2010, three oil-exporting countries (UAE, Kuwait, and Norway) have dropped o the list.

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 6/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

The other countries have worked hard to become regional nancial centers. Low tax rates and
friendly business climates have induced global corporate headquarters to locate there. Financial

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 7/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

services are also not labor intensive to develop, so the wealth can be generated and distributed
among a small population. In fact, Bermuda has less than 70,000 people.

The Ten Poorest Countries per Capita (2017)

The world's poorest countries, according to GDP per capita, are:

1. Comoros – $1,600 

2. South Sudan – $1,500

3. Mozambique – $1,300

4. Niger – $1,200

5. Malawi – $1,200

6. Tokelau – $1,000 (1993 estimate)

7. Liberia – $900

8. Democratic Republic of the Congo – $800

9. Burundi – $800

10. Central African Republic – $700

Nine of the world's poorest countries are in Africa. There are many theories as to why African
countries are so poor. One of the most credible is simply because of their size.

Small countries cannot build economies of scale. Unlike U.S. companies, they don’t have a large
domestic market they can easily use as a test market. 

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 8/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

Second, many African countries are landlocked, meaning they have no port. They must rely on
neighboring countries to get their goods to market. That increases their cost, making their prices less
competitive.

Only one of the world's poorest countries is outside of Africa. That's Tokoleau,  an island in the South
Paci c that's just three villages. It's supported by New Zealand.  

GDP Related Articles

• Components of GDP
• The Di erence Between Nominal GDP and Real GDP
• Compare GDP Between Countries
• Gross National Income per Capita
• What's the Di erence Between GDP and the GDP Growth Rate
• Ideal Growth Rate
• Current GDP Growth Rate
• Forecast and History of U.S. GDP Growth

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 9/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

GDP AND GROWTH

The Power of the U.S.
Economy
https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 10/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

GDP AND GROWTH

The Key to Understanding
What a Country Is Good at
Producing

GDP AND GROWTH

Is the Economy Getting
Better?

GDP AND GROWTH

3 Ways to Compare GDP
https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 11/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,
3 Ways to Compare GDP
Between Countries

WORLD ECONOMY
GDP AND GROWTH
China Is the World's Largest
Where's
Economy thefor
Best Standard
Third Year in of
a
Living? Depends
RowWho You Ask

GDP AND GROWTH

How the Great Depression
AGDP
ects
ANDYou Today
GROWTH

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 12/13
3/30/2018 GDP Per Capita: Definition, Formula, Highest, Lowest,

Our Best Money Tips, Delivered

Enter your email... SIGN UP

Personal Finance ABOUT US

STAY CONNECTED
Money Hacks ADVERTISE

Your Career TERMS OF USE

Small Business PRIVACY POLICY

Investing CAREERS

CONTACT

https://www.thebalance.com/gdp-per-capita-formula-u-s-compared-to-highest-and-lowest-3305848 13/13