Per capita income is national income
divided by population size. Per capita income is often used to measure a sector's average income and compare the wealth of different populations. Per capita income is also often used to measure a country's standard of living
. It is usually expressed in terms of a commonly used international currency such as the euro
or United States dollar
, and is useful because it is widely known, is easily calculable from readily available gross domestic product
(GDP) and population estimates, and produces a useful statistic for comparison of wealth between sovereign territories
. This helps to ascertain a country's development status. It is one of the three measures for calculating the Human Development Index
of a country. Per capita income is also called average income.