How is India top 5 in gdp while 81% of their population live in poverty
In: Economics
GDP is a grossed indicator of economic activity. It doesn’t necessarily indicate wealth as much as it indicates how many transactions are being made (which is why GDP increases when countries are at war even though the civilian economy takes a hit). GDP tends to be skewed with high-population because of this.
GDP per capita is a net indicator which, unlike gross indicators, actually reflect the wealth of an average citizen and takes population size into account.
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