WHO European health information at your fingertips.

Data set notes

European Health for All database

Indicators: 565

Updated: 18 October 2024

Contact: Data and Digital Health Unit (DDH)

The following abbreviations are used in the indicator titles:

• SDR: age-standardized death rates (see HFA-DB user manual/Technical notes, page 13, for details)

• FTE: full-time equivalent

• PP: physical persons

• PPP$: purchasing power parities expressed in US $, an internationally comparable scale reflecting the relative domestic purchasing powers of currencies.

More information: http://www.euro.who.int/en/data-and-evidence/databases/european-health-for-all-database-hfa-db

Indicator notes

Gross national income, US$ per capita
Indicator code: E990000.T

GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in current U.S. dollars. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States.

Source: World Bank national accounts data, and OECD National Accounts data files.

Data imported from World Bank’s World Development Indicators database, indicator NY.GNP.PCAP.CD - GNI per capita, Atlas method (current US$).

Country/Area notes

No information

General notes

What is Gross National Income, US$ Per Capita?

Gross National Income (GNI) per capita, measured in US dollars, is a critical economic indicator that reflects the average income of a country's citizens. It is calculated by dividing the total domestic and foreign output claimed by residents of a country, by the mid-year population. GNI per capita is a broad measure of prosperity and is used to gauge the economic well-being of a country's population. It helps in understanding the economic capacity of a country in terms of average income per person, providing insights into the standard of living and economic health of the nation.

How to Calculate Gross National Income, US$ Per Capita?

The calculation of Gross National Income (GNI) per capita involves several steps. It starts with the total income earned by a country's residents and businesses, including wages, profits, and taxes minus subsidies, plus net receipts of primary income from abroad. This figure is then divided by the mid-year population to arrive at GNI per capita. This calculation provides a per-person average that helps compare the economic performance of different countries, irrespective of population size. Accurate demographic and economic data are crucial for this calculation, ensuring that the GNI per capita reflects true income levels.

Importance of Gross National Income, US$ Per Capita

GNI per capita is an important statistic for policymakers, economists, and businesses. It serves as a benchmark for allocating resources and formulating economic policies. Higher GNI per capita indicates better economic conditions and living standards, influencing decisions in healthcare, education, and infrastructure development. It also aids international organizations in assessing economic health, guiding aid and development efforts. For businesses, understanding GNI per capita helps in identifying viable markets for expansion and tailoring products to consumer capabilities.

Strengths and Limitations of Gross National Income, US$ Per Capita

While GNI per capita is a valuable economic indicator, it comes with its own set of strengths and limitations that affect its utility and accuracy.

Strengths

GNI per capita is universally recognized and provides a consistent metric for comparing economic performance across countries. It encapsulates the income received by residents from domestic and international sources, offering a comprehensive view of a nation's economic environment. This uniformity facilitates global comparisons and longitudinal studies, helping identify trends and patterns in economic development. Additionally, GNI per capita is instrumental in resource distribution, economic planning, and policy formulation, making it a cornerstone of economic analysis.

Limitations

However, GNI per capita also has limitations. It does not account for income inequality within a country; a high GNI per capita might mask significant disparities between different segments of the population. It also overlooks non-monetary aspects of well-being like health, education, and environmental quality. Methodologically, the accuracy of GNI per capita depends heavily on the reliability of income and population data. In countries where data collection is inconsistent or incomplete, GNI per capita may not accurately reflect economic conditions. Furthermore, it does not capture the economic impact of seasonal variations and short-term demographic changes, which can be particularly pronounced in regions dependent on tourism or seasonal agriculture.

These sections provide a comprehensive overview of GNI per capita, explaining its calculation, importance, strengths, and limitations, offering a nuanced understanding of this crucial economic indicator.