The Fact
GDP is the market value of goods and services produced in an economy. GDP per capita is GDP divided by population. It is a measure of production per person, not the amount of income received by the average person or household.
What This Means
A rise in GDP per capita does not mean the typical household received an equivalent rise in income. Production and household income are different measures, and an average per person does not show how gains are distributed.
Sources
- U.S. Bureau of Economic Analysis, What Is GDP? / BEA Classroom Glossary; GDP and Beyond. Accessed October 2, 2026. https://www.bea.gov/resources/methodologies/nipa-handbook