Richest nations (per capita GDP)
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Gross domestic product (GDP) may be defined as the currency value of all goods and services produced in an economy within a given time period. GDP is the sum of consumption expenditure [C], total private investments [I], government spending [G], and net exports[X-M], where ‘X’ is total exports and ‘M’ total imports. GDP is the most widely used measurement of economic performance. Numerically,
Gross domestic product (GDP) may be defined as the currency value of all goods and services produced in an economy within a given time period. GDP is the sum of consumption expenditure [C], total private investments [I], government spending [G], and net exports[X-M], where ‘X’ is total exports and ‘M’ total imports. GDP is the most widely used measurement of economic performance. Numerically,
GDP = C + I + G + (X – M)
Per capita GDP of a country is obtained by dividing its GDP by its population. If GDP is an indicator of an economy’s performance, per capita GDP is a measurement of an economy’s health. In very general terms, the higher the per capita GDP, the healthier is an economy.
Per capita GDP is calculated using two methods:
1. Purchasing power parity (ppp) method – In this method the relative values of two currencies is considered. This adjustment is essential since the amount of commodity a unit of currency can buy varies from country to country. Numerically,
S = P1 / P2
where S is the exchange rate between currencies of two countries,
P1 is the cost of commodity C in country 1,
P2 is the cost of the same commodity C in country 2
2. Official exchange rate (nominal) method – Per capita GDP calculated by this method is based on the currency value of the concerned country. These figures when considered in a global perspective do not offer a clear representation of a country’s economy.
For all economic comparisons, per capita GDP calculated using ppp method is considered.The following table lists the top 15 richest nations based on per capita GDP based on ppp
Rank Country Per capita GDP in US $ 1 Qatar 87,600 2 Luxembourg 79,400 3 Kuwait 55,900 4 Norway 53,300 5 Brunei 51,000 6 Singapore 49,900 7 Ireland 46,600 8 United States of America 45,800 9 Iceland 40,400 10 Switzerland 40,100 11 Austria 39,300 12 Netherlands 39,000 13 Andorra 38,800 14 Canada 38,600 15 Sweden 37,500
All figures are based on 2007
