how to find real gdp per capita

GDP Per Capita Formula (Table of Contents)

Formula
Examples
Estimator

What is Gross domestic product Per Capita Formula?

The term "Gross domestic product per capita" refers to the cess of the economic output of a country that accounts for the country'south population. In other words, GDP per capita is the gross domestic product of a land that is apportioned against its entire population. However, it is important to note that usually existent Gdp (not nominal GDP) is used for the calculation of Gross domestic product per capita as information technology curbs the effects of aggrandizement and aids comparing beyond the years. The formula for Gdp per capita is quite uncomplicated and it can be derived by dividing the existent GDP of a land past its population. Mathematically, it is represented as,

Gross domestic product Per Capita = Real GDP / Population

Examples of GDP Per Capita Formula (With Excel Template)

Allow's take an example to sympathise the calculation of GDP Per Capita in a better manner.

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

GDP Per Capita Formula – Example #one

Let us accept the case of a country with a real Gross domestic product of $10 trillion during 2018 and a population of 250 meg as on December 31, 2018. Calculate the GDP per capita for the country during the yr 2018.

Solution:

Gdp Per Capita of the country is calculated using the formula given below

GDP Per Capita = Existent GDP / Population

GDP Per Capita = $10 trillion / 250 million
Gross domestic product Per Capita = $40,000

Therefore, the Gdp per capita for the land stood at $40,000 during the twelvemonth 2018.

GDP Per Capita Formula – Example #ii

Permit us take the case of a country with the post-obit information for the twelvemonth 2018. Summate the Gdp per capita of the country based on the given data.

Solution:

Nominal GDP of the country is calculated using the formula given beneath

Nominal GDP = Private Consumption + Gross Investment + Government Investment + (Exports – Imports)

Nominal Gdp = $half dozen trillion + $ten trillion + $4 trillion + ($two.5 trillion – $1 trillion)
Nominal Gdp = $21.5 trillion

Real GDP of the state is calculated using the formula given below

Real Gross domestic product = (Nominal Gdp / GDP Deflator) * 100

Real Gdp = $21.v trillion / 125 * 100
Existent Gross domestic product = $17.ii trillion

Gross domestic product Per Capita of the country is calculated using the formula given below

GDP Per Capita = Real Gdp / Population

Gross domestic product Per Capita = $17.2 trillion / 500 million
GDP Per Capita = $34,400

Therefore, the GDP per capita for the land stood at $34,400 for the year 2018.

Gross domestic product Per Capita Formula – Instance #3

Let us accept the case of the US for the year 2018. The following information was available. Calculate the GDP per capita of the U.s.-based on the given information.

Solution:

Nominal GDP of the US is calculated using the formula given below

Nominal GDP = Individual Consumption of Goods + Private Consumption of Services + Gross Stock-still Investment + Alter in Private Inventories + Government Investment + (Exports – Imports)

Nominal Gdp = $4.34 trillion + $9.61 trillion + $3.60 trillion + $0.06 trillion + $three.52 trillion + ($2.53 trillion – $3.16 trillion)
Nominal Gross domestic product = $20.50 trillion

Existent GDP of the United states of america is calculated using the formula given below

Real GDP = (Nominal GDP / GDP Deflator) * 100

Existent GDP = $twenty.50 trillion / 111.256 * 100
Real GDP = $18.43 trillion

GDP Per Capita of the The states is calculated using the formula given below

GDP Per Capita = Real GDP / Population

GDP Per Capita = $18.43 trillion / 328.23 million
GDP Per Capita = $56,137

Therefore, the GDP per capita for the Usa stood at $56,137 for the year 2018.

Link: https://world wide web.bea.gov/system/files/2019-03/gdp4q18_ini_2.pdf

Explanation

The formula for GDP per capita can exist derived by using the following steps:

Step 1: Firstly, determine the nominal GDP of the subject country on the basis of its private consumption, gross investment, government investment, exports and imports as shown below.

Nominal Gross domestic product = Private Consumption + Gross Investment + Government Investment + (Exports – Imports)

Step 2: Next, decide the GDP deflator which is a measure of the inflation of the country based on a designated base of operations year.

Step 3: Adjacent, calculate the real GDP of the state by dividing the nominal Gdp (pace 1) by the GDP deflator (pace 2) as shown beneath.

Real Gdp = Nominal Gross domestic product / Gross domestic product deflator

Step 4: Next, decide the population of the country and information technology is easily available at the governmental census websites of each country.

Step five: Finally, the formula for GDP per capita can be derived by dividing the existent Gdp (step 3) of the country past its population (footstep 4) equally shown below.

Gross domestic product Per Capita = Real GDP / Population

Relevance and Uses of Gdp Per Capita Formula

It is important to understand the concept of GDP per capita because it serves as a tool to measure out the economical prosperity of a country which is also used to compare countries and rank them accordingly. Interestingly, the Gross domestic product per capita growth will be negative for a country despite being a growing economy if its population grows faster than its GDP. "GDP per capita" is also referred to as "Per capita GDP".

Gdp Per Capita Formula Calculator

Yous can utilize the following GDP Per Capita Reckoner

Real Gross domestic product
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Gdp Per Capita

Recommended Manufactures

This is a guide to GDP Per Capita Formula. Hither we discuss How to Calculate GDP Per Capita along with applied examples. We as well provide a Gdp Per Capita Calculator with downloadable excel template. You may also look at the following articles to learn more –