How much gdp per capita is explained by produvtivity growth?
Answers
According to World Bank data, global per capita GDP grew by an average of 1.88% annually from 1961 to 2017. Over this period, the global economy expanded at an average pace of 3.52% annually, while the world's population increased by an average of 1.61% per annum.
What is Per Capita GDP
A country’s Gross Domestic Product (GDP) per person is obtained by dividing its GDP for a particular period by its average population for the year.
Per Capita GDP vs Other Measures of Output and Income
A nation may have consistent economic growth, but if its population is growing faster than its GDP, per capita GDP growth will be negative. This is not a problem for most advanced economies, as their tepid pace of economic growth can still outpace their extremely low population growth rates. But it is a major issue for countries with low levels of per capita GDP to begin with – including a number of nations in Africa – where rapidly increasing populations have resulted in a steady erosion of living standards.