How to calculate GDP per capita

The need for the calculation of GDP on soul of the population has a clear rationale. It's one thing when a GDPequal to us $ 2 billion, is made in the state with number of population 200 million people, and quite another when the same amount of GDP generated in a country with a population ten times smaller.

To determine GDP on soul of the population, you need to make a simple calculation: divide the total gross domestic product for the total number of the population of the country. So you know what amount of goods and services in terms of value generated in the economy per person. Russia 's GDP on soul of the population occupies the 34th place in world ranking.

GDP on soul of the population you can also calculate by purchasing power parity. Purchasing power parity is the ratio between the two currencies of different countries, which is calculated on the basis of their purchasing power relative to some amount of goods and services. For example, one and the same set of goods and services in Ukraine is UAH 500, while US $ 100. In this case, the purchasing power parity is 5 UAH per dollar, i.e., for 5 hryvnia in Ukraine, you can buy the same set that for 1 dollar in the United States. While the exchange rates of these countries can significantly deviate from parity. Therefore, you should understand that purchasing power parity is an indicator used by statistical organizations in the calculations, and the exchange rate is a real tool of the world economy. Our country 's GDP on soul of the population at purchasing power parity is on the 36th place.

But at the same time, you should be aware that GDP on soul of the population is not the only indicator of the effectiveness of the country's economy and quality of life of the population. It is not considered an ideal indicator of the development of the country, although to use when analyzing it.