Can someone please explain the difference between the GDP of a country and the GDP per capita of a country?
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The example in *Naked Economics* is, India has higher GDP than Israel, but Israel has higher GDP per capita than India.
Per capita means per person. Therefore it means divided by the population count.
With regular GDP, a country or subdivision can achieve a high GDP simply by having a high population. With GDP per capita, it is a rough measurement of how “rich” a country is because the amount is normalized by dividing it by the population.
(Note: To be more accurate, you need GDP per capita adjusted for purchasing power. Because the cost of living is different in different countries.)
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