IF you want to know about economy, you should familiarize the term GDP(Gross domestic product)
What is GDP?
Gross domestic product or GDP is the market value of all goods(e.g Cars , bikes, houses, grocery, in short, all tangible items) or services(e.g Doctors, Engineers, Lawyers, Your barber etc) produced in a country within a certain period like in one year
GDP of Pakistan in year 2016-2017 was $304.95 billion (which means market value of all goods and services produced in Pakistan in 2017 was $304.95 billion or $304950000000
GDP of Pakistan in year 2015-2016 was $288.65 billion
GDP per capita:
GDP per capita means average income of a single person
It can be calculated as
GDP in certain period (like in a year)
GDP per capita = ______________________________
Population in certain period
GDP of Pakistan in 2016-2017 was $304950000000
Population of Pakistan in 2017 was 197015955
$ 304950000000
GDP per capita = __________________ = $ 1547.8 this is the per capita income in Pakistan
197015955
This is simply understandable that the country with higher GDP per capita is more prosperous but the country with high GDP has large economy in world ranking. Pakistan has $304 billion and America has $19.2 trillion .
America has almost $ 59000 GDP per capita which is too much higher than Pakistan.
I am sure that you can understand the economy by reading this but let me clear one more thing
GDP growth rate:
GDP growth rate is calculated as Present GDP - Previous year GDP
___________________________ * 100
Previous year GDP
GDP in 2016-2017 - GDP in 2015-2016
GDP growth rate = __________________________________ * 100
GDP in 2015-2016
= $304950000000 - $288650000000
___________________________ * 100
$278650000000
= 5.64 %
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