GDP per Capita
Plain definition
GDP per capita is a country's gross domestic product divided by its population. It converts total economic output into a per-person figure, giving a rough sense of the average economic activity — and, by extension, the average standard of living — in that country.
In economics
GDP per capita is the most widely used single number for comparing prosperity across countries and tracking improvements in living standards over time. Economists usually pair it with real GDP: real GDP per capita shows whether output is growing faster than the population. It does not reveal inequality, health, or environmental quality, so it is often combined with measures like the Gini coefficient or the Human Development Index.
Example
Country A has GDP of 10,000. Country B has GDP of 40,000 per capita — B's economy is smaller in total, yet the average resident enjoys far more economic output. Comparing totals alone would have misled.
GDP per capita is not the same as average income or wealth. GDP includes corporate profits, investment, and government spending that never reach households, and a per-capita figure hides inequality: a country can have high GDP per capita while most citizens are poor. Median household income is a better measure of typical earnings.