How Do You Calculate the Real GDP Per Person?
The real Gross Domestic Product per person, or per capita, is calculated by first adjusting the nominal GDP of a country for inflation by dividing the nominal GDP by the deflator. The adjusted number, or real GDP, is then divided by the country's population.
- Determine the deflator
The deflator is determined by finding the level of inflation from the base year to the target year and then dividing that number by 100. In the United States, these numbers can be acquired on the website for the Bureau of Economic Analysis.
- Adjust the nominal GDP
Divide the GDP for the target year by the deflator. This number is the real GDP for that year.
- Divide by the population of the country
Divide the real GDP for a country by its population for the target year. This number is the real GDP per capita.