Can someone please explain the difference between the GDP of a country and the GDP per capita of a country?
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GDP per capita is GDP divided by the number of people in the country.
Imagine you have a country with a GDP of $1 trillion. That is, roughly speaking the amount of goods and services produced in the country.
Now is that country rich or poor?
That depends a lot on how many people live there. “Per capita” is basically a fancy way of saying “per person”.
If the country has a billion people, its GDP/capita is $1tn / 1bn = $1,000. On average, each person in the country produces $1,000 of goods or services. That’s not very much.
If the country has a million people, its GDP/capita is $1,000,000. That’s a lot! (Far more than any actual country.)
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