Real per-capita GDP allows comparisons of standards of living between nations by calculating real GDP per person, adjusting for differences in population size and inflation. While China has a larger total GDP than the US due to its much larger population, the US has a higher standard of living as evidenced by its higher per-capita GDP. Per-capita GDP figures provided show developing nations like Afghanistan and Zimbabwe have much lower standards of living than advanced nations like the US, UK, Japan, and Norway based on their per-capita GDPs.

1. Per-Capita GDP Comparisons

2. Real per-capita GDP allows us to compare the
standard of living in nations of vastly different
sizes. It does this by calculating real GDP per-person

3. China has a population that is four times the size of the United States.
With that many people their GDP is going to be very large. But where
would you expect to have a higher standard of living – China or the U.S?
Per-Capita GDP measures a nations standard of living. The higher per-capita
GDP is the higher the standard of living is.

4. The market value of all goods and services
produced within a nations border within a year
Per-Capita GDP =
Real Gross Domestic Product
Population
Real GDP per person
The number of people in the
nation
Real just means we have adjusted GDP
for inflation which allows us to compare
GDP over different time periods

5. When you see the following per-capita
GDP figures try to think about how a
person can live on that amount for a
year.

6. Developing Nations

7. Afghanistan: Per-Capita GDP $678

8. Zimbabwe: Per-Capita GDP $905

9. Mongolia: Per-Capita GDP $4,056

11. BRIC represents Brazil – Russia – India – China. These are the
major developing economies of the 21st century.

12. India: Per-Capita GDP $1,499

13. China: Per-Capita GDP $6,807

14. Brazil: Per-Capita GDP $11,208

15. Russia: Per-Capita GDP $14,612

16. Advanced Nations

17. Japan: Per-Capita GDP $38,492

18. United Kingdom: Per-Capita GDP $39,337

19. United States: Per-Capita GDP $53,143

20. Sweden: Per-Capita GDP $58,269

21. Norway: Per-Capita GDP $100,819