How is India top 5 in gdp while 81% of their population live in poverty
In: Economics
Gdp is not the same as gdp per capita. Country A with 5 people produce $1000 worth of goods gdp=$1000. Country B with 10 people produces the same $1000 worth of goods, gdp is also $1000. But per capita gdp is $200 for A and $100 for B. Gdp per capita is a better measure of individual wealth.
There’s also GNI (gross national income), nominal GDP, CPI etc. when considering standard of living for an average person in a country. Those are a few but they’re all flawed in that they only consider things we can put a monetary value on. There are even more indices that consider access to resources, work/life balances, culture, happiness/ mental health etc. that affect how standard of living.
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