IGCSE Geography / Development and human welfare

Measuring development: GDP per capita

Edexcel International GCSE Geography (4GE1), chapter 9: Development and human welfare, specification point 9.1c, 9.S2. Free lesson.

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GDP per capita is a country’s total value of goods and services produced in a year, divided by its population. It is useful for comparing countries, but it is only an average and cannot show every part of people’s development.

What GDP per capita measures

GDP means gross domestic product. Per capita means per person. GDP per capita is the total value of goods and services produced in a country in a year, divided by the country’s population. It is usually given in US dollars. A full definition includes three parts: goods and services, in a year, per person.

How to calculate GDP per capita

Divide GDP by population. Make sure both values use the same currency and convert billions and millions into full numbers when needed.

What country comparisons show

GDP per capita makes it easy to compare countries. In 2025, Norway’s figure was about 120 times Niger’s. This difference between richer and poorer countries is called the development gap. China’s figure was close to the world average. The 2025 figures are World Bank first estimates, so they may be revised slightly. Prices vary between countries. Purchasing power parity (PPP) adjusts figures to reflect what a dollar buys in each country.

What GDP per capita hides

GDP per capita is one average, so it cannot describe everyone’s income or show every part of welfare. This can make a country’s development look better than it is for many people. Inequality: the average does not show who receives the income. In South Africa, the richest 10% received 42% of all income in 2022. Unrecorded work: informal work, such as jobs with no contract and no tax paid, is not counted. Unpaid work, such as growing food for a family, is also left out. Welfare: the figure says nothing about health, education or freedom, so other measures are needed. GDP per capita…

Single and composite measures

An indicator is one piece of data about a country. A single measure uses one indicator, while a composite measure combines several indicators into one number. GDP per capita is a single measure. It is simple and easy to compare. The Human Development Index (HDI) is a composite measure. It gives a broader picture of how people live.

Explain why GDP per capita may not be useful

For a two-mark answer, link what the average hides to what that means for people. A high figure can hide poverty because income may be unevenly shared. Example answer: GDP per capita is an average, so it hides inequality. A country can have a high figure while many of its people are still poor.

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