Question

How do I calculate the ratio of GDP per capita?

Say GDP per capita for year 2001 is 12,459 and the average annual growth rate for real GDP per capita (years 1992-2001) is 0.3%. Would it be 0.3% x 12,459?

Answer 1

GDP per capita can be calculated by using the following formula:

GDP per capita = GDP/population

Here, GDP can be calculated on quarterly or annual basis.

By using the above formula, real GDP per capita as well nominal GDP per capita can be calculated.

If we want to calculate the new real GDP per capita from the past data of real GDP per capita, then the above given data will be useful. For example,

Real GDP per capita in 2001 = $12459

Annual real GDP growth rate = .3%

Then,

New real GDP per capita = 12459*(1+.3%) = $12496.38