>$60,000 $50,000–$60,000 $40,000–$50,000 $30,000–$40,000 | $20,000–$30,000 $10,000–$20,000 $5,000–$10,000 $2,500–$5,000 | $1,000–$2,500 $500–$1,000 <$500 No data |
Nominal gross domestic product (GDP) per capita is the total value of a country's finished goods and services (gross domestic product) divided by its total population (per capita).
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Gross domestic product per capita is often used as a proxy indicator an indicator of a country's standard of living; however, this is inaccurate because GDP per capita is not a measure of personal income and does not take into account social and environmental costs and benefits. [1] [2] Measures of personal income include average wage, real income, median income, disposable income and gross national income (GNI) per capita.
Comparisons of GDP per capita are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. PPP largely removes the exchange rate problem but not others; it does not reflect the value of economic output in international trade, and it also requires more estimation than GDP per capita.[ relevant to this section? – discuss ] On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures.
GDP per capita does not consider differences in the cost of living in different countries, and the results may vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, while the standard of living of its population might not change by as much.
Several leading GDP-per-capita (nominal) jurisdictions may be considered tax havens, and their GDP data subject to material distortion by tax-planning activities. Examples include Bermuda, the Cayman Islands, Ireland and Luxembourg. [3]
Non-sovereign entities (the world, continents, and some dependent territories) and states with limited international recognition are included in the list in cases in which they appear in the sources. These economies are not ranked in the charts (except Kosovo and Taiwan), but are listed in sequence by GDP for comparison. Four UN members (Cuba, Liechtenstein, Monaco and North Korea) do not belong to the International Monetary Fund (IMF), hence their economies are not ranked. Kosovo, is not a member of the United Nations and is a member of the IMF. Taiwan is not an IMF member, but it is listed in the official IMF indices.
