Beyond GDP Per
Capita: Understanding Economic
Well-Being
Why GDP per capita can be misleading and what we should consider
instead
TABLE OF CONTENTS
01 INTRODUCTIO
02 LIMITATIONS
03 REAL WORLD
04 CONCLUSION
N
EXAMPLE
01
INTRODUCTI
ON
What is GDP per
capita?
• GDP per capita =
Total economic output ÷
Population
• It helps compare living standards
across countries and track growth
over time.
• But it doesn’t show who benefits
from economic growth.
02
LIMITATIONS
Limitation 1 : Income Inequality
• GDP per capita is an average—it doesn’t reveal the income gap.
• Brazil is one of the most unequal countries in the world.
• The richest 10% earn 42% of the total income,
while the poorest 50% earn just 10%.
Limitation 2 : Informal Economy &
Unemployment
• GDP does not account for informal jobs, which dominate Brazil’s workforce.
• About 40% of workers are in the informal economy—
street vendors, domestic workers, gig workers with no job security or benefits.
• Unemployment remains high despite GDP growth, showing a disconnect
between economic output and job opportunities.
Limitation 3 : Environmental Costs
• GDP growth often comes at the cost of environmental destruction.
• Brazil’s economy depends heavily on agriculture and industry, leading to
deforestation, pollution, and climate risks.
• Amazon deforestation surged due to economic expansion, threatening
biodiversity and indigenous communities.
03
REAL WORLD
EXAMPLE
Real-World Example – Brazil’s Growth vs.
Reality
• Brazil has the largest economy in South America, but
millions still live in poverty.
• Rapid urbanization has led to massive informal settlements (favelas),
where basic services like sanitation, electricity, and healthcare are lacking.
• Economic growth alone doesn’t solve deep-rooted social and
infrastructure issues.
04
CONCLUSION
Conclusion
• GDP per capita is not a complete measure of well-being.
• Countries like Brazil show that economic growth must be
inclusive and sustainable.
• We need better indicators like the Human Development Index
(HDI) and Genuine Progress Indicator (GPI) to measure
real progress.
THANK YOU
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RESOURCES
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GDP image: https://www.visualcapitalist.com/wpcontent/uploads/2021/07/GDP_per_Capita_MainPost.jpg
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Script: https://chatgpt.com