GDP Per Capita

GDP is the single most useful number when describing the size and growth of a country's economy. An important thing to consider, though, is how GDP is connected with standard of living. After all, to the citizens of a country, the economy itself is less important than the standard of living that it provides.
GDP per capita, the GDP divided by the size of the population, gives the amount of GDP that each individual gets, on average, and thereby provides an excellent measure of standard of living within an economy. Because GDP is equal to national income, the value of GDP per capita is therefore the income of a representative individual. This number is connected directly to standard of living. In general, the higher GDP per capita in a country, the higher the standard of living.
GDP per capita is a more useful measure than GDP for determining standard of living because of differences in population across countries. If a country has a large GDP and a very large population, each person in the country may have a low income and thus may live in poor conditions. On the other hand, a country may have a moderate GDP but a very small population and thus a high individual income. Using the GDP per capita measure to compare standard of living across countries avoids the problem of division of GDP among the inhabitants of a country.