this site summarizes the difference between GDP and GDP per capita as:

1. GDP is a measure of a nation a­s economic health while GDP per capita takes into account
the reflection of such economic health into an individual citizen a­s perspective.
2. GDP measures the nation a­s wealth while GDP per capita roughly determines the standard
of living in a particular country.
3. GDP normally increase as the population increase while GDP per capita may decrease when
population increases.

Since real gdp is just gdp adjusted for inflation, would the same definition summarized for GDP vs GDP per capita hold true for Real GDP vs Real GDP per capita?


1 Answer 1



Example. In 2017, a country's GDP was \$100 and its population was 100.

In 2018, its GDP was \$110, its population was 105, and the price level rose by 3%. Then:

  • 2017 GDP per capita was $\$100 \div \ 100 = \$1$.
  • 2017 Real GDP per capita (in 2017 prices) was also $\$1.$
  • 2018 GDP per capita was $\$110 \div \ 105 \approx \$1.048$.
  • 2018 Real GDP per capita (in 2017 prices) was $\$1.048 \div 1.03 \approx \$1.017$.

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