PolishForums.com
POLAND . The Unofficial Guide.
 Unanswered | Archives
Poland News and Events Witamy, Guest | PF Members | Gold Members

Polish Forums / Business, Economy / Post reply Start a new thread in [Business, Economy]

GDP or GDP per capita?



SebastianThreads: 6
Posts: 110
Joined: Feb 16, 10 ♂ 		 Feb 18, 10, 01:41    #1
hey guys. I'm no economist. But I was reading that Poland has the 15th largest GDP in the world, or something like that. But their GDP per capita is low, only like 16,000. What is more accurate, GDP or GDP per capita? Just wondering.


skysoulmateThreads: 41
Posts: 3,039
Joined: Jan 10, 10 ♂ 		Edited by: skysoulmate  Feb 18, 10, 12:39    #2
Both measures are important but look at different aspects. Let's say you have a family of 4 with both parents working and the 2 kids in school. The parents make a total of $100k a year. That's the total "GDP" for the family. However since there are 4 "citizens" in that family their GDP per capita is only $25k per year.

GDP per capita shows more of each individual's wealth wheras the total GDP shows a country's combined wealth. I'm generalizing but it'll make it easier to understand.

You might also look into Purchasing Power Parity (PPP) as a comparison.

"PPP basis is arguably more useful when comparing differences in living standards on the whole between nations because PPP takes into account the relative cost of living and the inflation rates of different countries, rather than just a nominal gross domestic product (GDP) comparison."
(source wikipidia).

List of countries by GDP (PPP)
http://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

Poland is about 20 here.


skysoulmateThreads: 41
Posts: 3,039
Joined: Jan 10, 10 ♂ 		Edited by: skysoulmate  Feb 18, 10, 13:05    #3
GDP (PPP) 2008 estimate
 -  Total $668.551 billion[3] (21st)
 -  Per capita $17,536[3] (50th)
GDP (nominal) 2008 estimate
 -  Total $527.866 billion[3] (18th)
 -  Per capita $13,846[3] (50th)

Source: http://en.m.wikipedia.org/wiki/Poland?wasRedirected=true

GDP and GDP per capita comparisons might be skewed as $17k a year is not much in the US and the UK but a whole lot of money in Zimbabwe. PPP is supposed to correct it somewhat but it's far from perfect.


convexThreads: 47
Posts: 7,189
Joined: Nov 25, 09 Pictures: 2 ♂ 		Edited by: convex  Feb 18, 10, 13:11    #4
What are you looking for? If you want to compare the financial situation of average people in different countries, you're best bet is to take a look at median incomes, the cost of a local basket of goods, including real estate, and the unemployment rate.

GDP is a sham :)

If it's quality of life you're looking for, HDI is a good indicator.

OECD has stats on discretionary income too



Home / Business, Economy / Unanswered [this forum] | Similar


Similar discussions:

Reply re: GDP or GDP per capita?

If you're reading this, you are probably not a registered user yet and cannot access all forums and features!

 - Before creating a new thread, make sure to follow the Thread Title Creation Rules.
 - Your message must comply with the General Forum Rules.
 - If you have further questions, check the Forum FAQ & Feedback section.

To post anonymously, please enter a temporary and unique username (without password) or login and post as a member.

Username:   Password: 


re: GDP or GDP per capita?


Posting Guidelines:

- Stay on topic. If your post is not related to this thread, create a new thread or post in the Off-topic forum.
- Use the Search and Similar Threads features to avoid duplicating threads.
- Do not insult or harass others, play nicely!
- Do not personally attack others to avoid temporary or permanent suspension.
Info about REM-WIG PHU WALDEMAR GOLAWSKI company  The 'Secret' of Poland's Economic Success


Random: Polish people mocked and humiliated in Season 7 of House MD



Home | Unanswered | Archives | Random | Statistics Time in Poland: 04:06 / Feb 9

About Us | Contact Us | Rules, Privacy | Poland Advertising
© 2005-12 PolishForums.com