How is GDP per capita best defined?

GDP per capita is best defined as the gross domestic product per person, which truly captures the essence of the metric. It represents the economic output of a country divided by its population, giving a per-person perspective on the economic performance of a nation.

This metric is crucial for understanding the average economic activity and prosperity of individuals within a country, allowing for meaningful comparisons between nations regardless of their overall size. It indicates how much of the country's wealth is, on average, available to each citizen, thereby serving as an indicator of living standards and economic well-being.

Other interpretations, while related, do not capture the primary focus of GDP per capita as accurately. For example, defining it as the total income of a country divided by its population is similar but does not explicitly connect it back to GDP, which is a specific measure of economic output. The definitions involving adjustments for inflation or average annual income of citizens do not specifically align with the concept of GDP per capita, as they may imply variations in economic conditions or income distribution that are not encompassed by this per-person measure.