Scroll Top

search-icon
    drop-arrow

    GDP Per Capita

    Introduction to GDP Per Capita

    Gross Domestic Product per capita or GDP per capita is a measure that calculates the country’s economic output that accounts for the number of people in the country or the country’s population.

    GDP per capita is calculated by dividing the country’s GDP by the country’s total population. GDP per capita is used by economists along with real and nominal GDP to analyse the economic strength and growth of the country.

    What is GDP Per Capita and how does it work?

    GDP per capita is a measure that helps to determine the economic strength and growth of the nation, which ultimately indicates the prosperity of the nation. GDP per capita is calculated considering the financial worth of the nation’s produce. This means that the GDP per capita is nothing but a measure of the nation’s economic activity.

    After taking into account this economic activity, the calculated wealth is divided by the population of the country. By doing so the GDP per capita measures the country’s economic output per person in that country.

    Very often, the small nations that are rich and well developed turn out to have a higher GDP per capita, which indicates that these nations are prosperous and economically strong and growing. This also indicates that the nation is a good place to live for its people as their needs are being satisfied as the total wealth is divided among a smaller population. This is why the country’s having smaller populations often seem to have a higher GDP per capita as compared to the highly populated countries.

    Importance of GDP Per Capita

    The Gross Domestic Product per capita or GDP per capita can be used by the government to understand the distribution of wealth among the people of the country. This also helps the government to understand the economic activity and growth of the nation which proves to be beneficial in managing the economic and financial affairs in future.

    Economists on the other hand also study the GDP per capita of different nations to judge the nations’ prosperity and economic growth.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption