Why do economists use per capita figures so often when discussing growth?

Per capita figures are calculated by dividing the total amount of a particular variable by the population of a given region. For example, Gross Domestic Product (GDP) per capita is calculated by dividing the GDP of a country by its population. This provides a measure of the average economic performance per person in that country.

Economic growth is often measured by the increase in GDP over time. However, a country's GDP could grow solely due to an increase in population, without any real improvement in the living standards of its citizens. When economists use per capita figures, they can better gauge the actual improvement in economic performance by considering the changes in the average living standards or average economic activity per person.

There are several advantages of using per capita figures when discussing economic growth: 1. Comparability: Per capita figures allow for comparisons between countries with varying population sizes, as it considers economic performance relative to population size. 2. Living Standards: Per capita measurements provide a more accurate reflection of the living standards of the average citizen in a country, as it accounts for population growth alongside economic growth. 3. Policy Evaluation: Per capita figures can help policymakers identify and target specific areas where economic growth has not translated into improvements in living standards, allowing for more targeted and effective policy interventions. In summary, economists use per capita figures so often when discussing growth because they provide a more accurate representation of living standards and economic performance, allowing for better comparisons and more informed policy decisions.