<p>Per Capita GDP, or Gross Domestic Product per capita, is a measure of a country's economic output that accounts for its population size. It's calculated by dividing the total GDP by the total population. This metric provides a more accurate picture of a country's wealth and standard of living than GDP alone, as it considers the number of people sharing that wealth.</p>

<h2>How It Works</h2>
<p>To calculate Per Capita GDP, use the following formula:</p>
<table>
<tbody>
<tr>
<td><strong>Per Capita GDP</strong></td>
<td>=</td>
<td><strong>GDP</strong></td>
<td>/</td>
<td><strong>Population</strong></td>
</tr>
</tbody>
</table>
<p>For example, if a country has a GDP of $2 trillion and a population of 20 million, its Per Capita GDP would be:</p>
<p><strong>$2,000,000,000,000</strong> / <strong>20,000,000</strong> = <strong>$100,000</strong></p>

<h2>Why It Matters for Traders</h2>
<p>Per Capita GDP is a crucial indicator for traders as it:</p>
<ul>
<li>Provides insight into a country's economic health and living standards.</li>
<li>Helps compare the economic development of different countries.</li>
<li>Can influence currency exchange rates and investment decisions.</li>
</ul>
<p>For instance, a high Per Capita GDP might indicate a strong currency and attractive investment opportunities, while a low one could signal economic struggles and potential currency depreciation.</p>

<h2>Example</h2>
<p>In 2021, the United States had a GDP of approximately $23 trillion and a population of around 332 million. Its Per Capita GDP was:</p>
<p><strong>$23,000,000,000,000</strong> / <strong>332,000,000</strong> = <strong>$69,246</strong></p>
<p>This figure is higher than many other developed countries, reflecting the U.S.'s strong economy and high standard of living.</p>

<h2>Key Takeaways</h2>
<ul>
<li>Per Capita GDP is a country's total GDP divided by its population.</li>
<li>It provides a more accurate picture of a country's wealth and living standards than GDP alone.</li>
<li>Traders use Per Capita GDP to assess a country's economic health and make informed investment decisions.</li>
<li>Per Capita GDP can be easily calculated using the formula: Per Capita GDP = GDP / Population.</li>
</ul>