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.


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1999$44,600Glass-Steagall repealed.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

See more: How To Make A Pact With The Devil : Owen, Un, Pact With The Devil

2019$57,719Trade 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