GDP per capita (nominal)

GDP per capita is a country's total economic output divided by its population — the average economic production per person, commonly used as an indicator of economic development.

GDP per capita = Total GDP ÷ Population. GDP is measured via the expenditure approach (consumption + investment + government spending + net exports).

GDP measured in nominal terms (not inflation-adjusted) and converted to US dollars at market exchange rates. The dollar serves as the global reference currency for international comparisons.

Purchasing Power Parity (PPP) adjusts for domestic price differences but systematically overestimates income in developing countries. The Balassa-Samuelson effect (1964) shows that non-traded goods are cheaper in poorer countries, inflating their PPP-adjusted income. Nominal GDP better reflects international purchasing power and power dynamics — the actual ability to buy imports, invest abroad, or hire foreign workers.

Reference: Balassa, B. (1964). "The Purchasing-Power Parity Doctrine: A Reappraisal." Journal of Political Economy

The World Economic Outlook (WEO) is a biannual publication by the IMF Research Department, released every April and October. It contains macroeconomic data for 190+ countries from 1980 to present, plus 5-year projections based on IMF staff analysis.