The Key Difference Between GDP Per Capita vs GDP Growth Rate

GDP per capita vs GDP growth rate
Feature	GDP Per Capita	GDP Growth Rate
Definition	Total economic output divided by the population, showing average income per person.	Percentage change in GDP from one period to another, showing economic growth speed.
Purpose	Measures average living standards or wealth of individuals.	Measures how fast an economy is expanding or contracting.
Unit	Currency units per person (e.g., USD per capita).	Percentage (%).
Time Frame	Usually calculated annually.	Usually calculated quarterly or annually.
Interpretation	Higher values indicate better average wealth and living standards.	Positive rate indicates growth; negative indicates recession.
Impact of Population	Accounts for population size, allowing per person comparison.	Does not adjust for population changes directly.
Economic Insight	Shows wealth distribution potential but not income inequality.	Shows economic momentum but not wealth distribution.
Usefulness	Used to compare economic prosperity across countries or regions.	Used to assess economic performance and policy effectiveness.
Limitations	Does not reflect income inequality or cost of living differences.	Can be volatile and influenced by short-term factors.
Related Indicators	Human Development Index (HDI), median income.	Unemployment rate, inflation rate.