What is the Difference Between GDP Per Capita and Income Per Capita?

The difference between GDP per capita and income per capita lies in what they measure and how they are calculated. Here are the key differences:

• GDP per capita: This metric breaks down a country's GDP per person and is calculated by dividing the GDP of a country by its population. GDP (Gross Domestic Product) refers to the income generated by production activities on the economic territory of a country. GDP per capita measures the economic output of a nation per person, seeking to determine the prosperity of a nation by economic growth per person.
• Income per capita: This metric measures the amount of money earned per person in a nation. It is used to evaluate the average per-person income for a given region to determine the standard of living and economic well-being of the population. Income per capita can be more focused on individual earnings, whereas GDP per capita takes into account the overall economic output of a nation.

In summary, GDP per capita measures the economic output of a nation per person, while income per capita measures the average earnings per person in a nation. Both metrics are used to understand a country's average level of prosperity and make comparisons across countries.

Comparative Table: GDP Per Capita vs Income Per Capita

Here is a table comparing GDP per capita and income per capita:

GDP per capita measures the economic output of a nation per person, while income per capita measures the amount of money earned per person in a nation. Both metrics are used to evaluate the prosperity and economic growth of a country or region.