Kimberly Amadeo is an experienced on U.S. And also world economies and investing, through over twenty years of experience in economic analysis and organization strategy. She is the chairman of the economic website civilization Money Watch. As a writer because that The Balance, Kimberly provides insight on the state the the contemporary economy, and past events that have had actually a lasting impact." data-inline-tooltip="true">Kimberly Amadeo

Toby Walters specialization in accounting, banking, credit transaction cards, investing, and a range of finance topics. That has more than two decades of experience in finance and also is a chartered financial analyst.

You are watching: Dividing real gdp by the population:

Real GDP per capita is a measure of the total economic calculation of a country divided by the variety of people and readjusted for inflation. It's provided to to compare the standard that living between countries and also over time.

Thiseconomic indicatorconsists that the complying with three concepts. Girlfriend must understand these first if you want to understand GDP per capita.

The first concept is“gross residential product.” the measures everything that a country produces in a year. Thecomponents of GDParepersonal consumption, company investment,government spending,andexportsminusimports. TheBureau of economic Analysisreports that quarterly, update its estimate each month.

The 2nd is “real GDP,” which is GDP without the result of price changes. Inflation renders regular, “nominal” GDP higher, so genuine GDP is a an ext accurate measurement once you desire to to compare an economic climate over time.

The third is“per capita,” which means “per person.” actual GDP is divided by the populace of a nation to calculate genuine GDP per capita. It"s the best way to compare financial indicators prefer GDP for countries with very different populace sizes.

## genuine GDP every Capita Formula

The formula for actual GDP every capita depends on what data you have available. Let's begin with the simplest. If you currently know real GDP (R), climate you division it through the populace (C):

In the joined States, the office of Economic evaluation calculates genuine GDP making use of 2012as the basic year. If girlfriend don"t understand real GDP, you can calculate the from nominal GDP (N) if you recognize the implicit price deflator(D). The deflator is the ratio of what goods and services would price today if there had been no inflation because the base year. It"s similar to an additional measure that inflation, the consumer Price Index. Its materials are weighted differently.

Fortunately, the BEA offers the deflator because that 2012 in Table 1.1.9. Here's the formula to calculate genuine GDP every capita (R) if you only know nominal GDP (N) and the deflator (D):

The best way to calculate actual GDP every capita for the United states is to usage the actual GDP estimates already published by the BEA. Then just divide that by the population. Fortunately, the commonwealth Reserve bank of St. Louis currently calculated it, as displayed below.

 Year Real GDP every Capita Event influence GDP 1947 \$14,203 1948 \$14,316 Recession. Adjustment come peace-time. 1949 \$14,202 Recession ongoing. Adjustment come peace-time. 1950 \$14,490 Korean War. 1951 \$15,759 1952 \$16,288 1953 \$17,013 Eisenhower take it office. War ended. Recession. 1954 \$16,425 Recession ended. 1955 \$17,132 1956 \$17,376 1957 \$17,583 Fed increased rates. Recession. 1958 \$16,793 Fed lower rates. Recession ended. 1959 \$17,734 Fed elevated rates. 1960 \$18,268 Recession. 1961 \$17,816 JFK took office, finished recession. 1962 \$18,863 1963 \$19,257 JFK assassinated. LBJ took office. 1964 \$20,169 1965 \$20,997 Vietnam War. 1966 \$22,510 Fed raised rates come fight inflation. 1967 \$22,911 Economy slowed. 1968 \$23,551 Fed increased rates. 1969 \$24,365 Nixon took office. Fed raised rates. 1970 \$24,189 Recession. 1971 \$24,520 Burns chaired Fed. Stagflation. Wage-price controls. Gold conventional ended. 1972 \$25,083 Burns chaired Fed. Stagflation. Wage-price controls. 1973 \$26,718 OPEC embargo. Recession. 1974 \$26,643 Ford take it office. 1975 \$25,789 Recession ended. 1976 \$27,101 1977 \$27,706 Carter took office. 1978 \$28,549 Fed raised rates. 1979 \$30,077 Volcker chaired Fed. Increased rates. 1980 \$30,154 Recession. 1981 \$30,316 Reagan take it office. Recession. Reduced tax rate. 1982 \$29,365 Recession ended. 1983 \$29,511 Payroll count raised. 1984 \$31,762 1985 \$32,920 1986 \$33,972 Reagan cut taxes. 1987 \$34,585 Greenspan chaired Fed. Inflation. 1988 \$35,728 Fed raised rates. 1989 \$36,929 Bush 41 took office. S&L Crisis. 1990 \$37,593 Recession. 1991 \$36,746 Recession ended. 1992 \$37,304 Fed lowered rate. 1993 \$38,029 Clinton took office. NAFTA and also EU. 1994 \$38,852 Economy flourished 4%. 1995 \$39,729 Fed increased rates. 1996 \$40,292 1997 \$41,532 1998 \$43,035 LTCM crisis. 1999 \$44,600 Glass-Steagall repealed. 2000 \$45,944 Tech balloon burst. 2001 \$46,531 Bush 43 took office. Recession. 9/11 attacks. 2002 \$46,690 War top top Terror. 2003 \$47,078 Fed lower rate. Iraq War. JGTRRA 2004 \$48,663 Fed increased rates, hurting interest-only loan holders. 2005 \$50,081 Fed raised rates, hurting interest-only loan holders. 2006 \$51,277 Fed elevated rates, hurting interest-only loan holders. 2007 \$51,540 Dow hit 14,164.43. 2008 \$51,637 Financial crisis. Fed lower rates. QE. 2009 \$49,491 Obama took office. American Recovery and also Reinvestment Act. 2010 \$49,903 ACA passed. Taxes cuts. 2011 \$50,495 Iraq battle ended. 2012 \$51,468 Fiscal cliff. 2013 \$51,921 Sequestration. 2014 \$52,293 Strong dollar ache exports. 2015 \$53,983 2016 \$54,464 Jobs improved. 2017 \$55,240 Trump took office. Disagreement weakened. 2018 \$56,503 Trump taxes cuts.See more: How To Make A Pact With The Devil : Owen, Un, Pact With The Devil 2019 \$57,719 Trade war.

### BEA, nationwide Income and Product accounts Tables: Table 1.1.5. In the name of GDP, Table 1.1.1. GDP growth Rate.Resources for Table

Historical Fed accumulation RateHistory the Dow closing AverageRecession HistoryHistory of gold StandardBLS,Historical Inflation Rate