A tool exists to compute the inflation-adjusted gross domestic product divided by the total population. This computation provides a more accurate reflection of the average economic output per person within a country, accounting for both price changes over time and population size. For example, if a nation’s total economic output, adjusted for inflation, is $1 trillion and its population is 100 million, the resulting value would be $10,000.
This metric offers valuable insight into the standard of living and economic well-being of a nation’s residents. It allows for meaningful comparisons of economic performance across different countries and time periods, mitigating the distortions caused by inflation and varying population sizes. Historically, this calculation has been employed by economists and policymakers to assess economic progress, identify potential disparities in wealth distribution, and inform decisions related to fiscal and monetary policy.
