Many business and economic news and articles have reported on GDP per capita. The discussion of GDP per capita rank is also widely connected with a country’s economic development and business opportunities. Here we will discuss the definition, GDP per capita rank to the country with the highest GDP.

Here’s the full and brief explanation!

Source: Unsplash

What is GDP per Capita Rank?

Simply, GDP per capita is an economic metric. GDP (Gross Domestic Product) per capita calculates a nation’s economic result for each person. GDP per capita rank is also a tool to measure how affluent a country is based on economic glasses. 

So, why GDP per Capita Rank is needed?

GDP per capita rank is needed so the economist can measure and determine whether a country (or even the world) is in recession or in the growing phase. In a simple way, with GDP per capita rank, when a nation’s GDP is growing, the business and the economy are in a good state. This will be good news and can lead to many decision-making in minor and major areas. 

GDP per Capita Rank: High-Income vs Low-Income Nations

One of the ways to read GDP per capita is to compare the value of countries with each other, here we provide information about countries with the highest GDP rank and lowest GDP rank.

10 Countries with Highest GDP Based on IMF (International Monetary Fund)

The data below is based on a survey conducted by the International Monetary Fund (IMF). The IMF (International Monetary Fund) is an international economic organization that 190 countries participate in.

Source: Investopedia

Based on the data above, many countries with the highest GDP actually have small populations. However, many of these countries are exporters as well as world financial and business centres. 

10 Countries with Lowest GDP Based on IMF (International Monetary Fund)

The data below is based on a survey conducted by the International Monetary Fund (IMF). Let’s see the difference!

Source: Investopedia

Based on the country data above, most of them are new countries or countries that have conflicts. Some of these countries are also still heavily dependent on agricultural development but have not been able to maximize their export markets. 

How Does GDP per Capita Rank Compare to Each Nation?

First of all, the amount of income will be calculated with the value of each country’s currency. Then, to equalize with other countries, the income is converted into one currency, the Dollar.

Since GDP per capita rank is calculated based on population, the divisor is the total income divided by the total population of the country. After both are divided, the GDP per capita value will appear and then the ranking is done. 

So, How do I Use GPD per Capita Rank?

If you’re a businessman looking to expand your business in the world market, the GDP per capita rank will help you build a business strategy that suits the country you’re aiming for. Especially for the list of countries with the highest GDP.

Meanwhile, if you are an economics student then this is a good opportunity to find out more about the economics of world economic development. Even see economic trends in the future.

At this point, do you understand what GDP per capita rank is? 

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