<p>Your reasoning seems correct.</p>

<p>if we consider that <em>Gp=G/(population)</em> and we know that Gp is increasing then we have the following possibilities:</p>

<ul>
<li>if <em>(population)</em> is static or growing then we can conclude that G must necessarily be growing</li>
<li>if <em>(population)</em> is decreasing then G can be either static or actually decreasing slower than <em>(population)</em>. In this case, the statement on the question fails</li>
</ul>

CC BY-SA 3.0
2017-06-06T17:37:21.263Z
2017-06-06T17:37:21.263Z
Lucas Oliveira
<p>This question was asked in very popular civil services examination.</p>

<blockquote>
  <p>Question is : Whether the following statement is correct or not?
  Statement : If a country is experiencing increase in its per-capita
  GDP, its GDP must necessarily be growing?</p>
</blockquote>

<p>The approach I applied is that, in a country like Syria, if mass emigration happens then population will decrease and at the same time GDP might not decrease with same rate. so this statement will be false. </p>

<p>I know my assumption is not too correct, so ignoring that, please help me arrive in correct answer. </p>

CC BY-SA 3.0
2017-06-06T13:56:58.713Z
What do you mean your assumption is not correct?
Giskard
CC BY-SA 3.0
2017-06-06T14:01:59.703Z
I'm not good in such questions/topics, so I'm just afraid if this is right way to think or not. 
Moreover I didn't want this particular assumption to prevent better examples coming from more qualified people here.
Maverick33
CC BY-SA 3.0
2017-06-06T14:33:09.510Z
I am not sure I understand what you are asking, but if $G_p = G/(population)$ is the per-capita GDP then $G_p$ increases if the population shrinks or the GDP grows, as you pointed out. So the statement is not correct.
Taufi
CC BY-SA 3.0
2017-06-06T14:34:27.987Z
OP, your logic is correct, The statement is false, because the increase in GDP per capita could be due to a population decrease.
BB King
CC BY-SA 3.0
2017-06-06T14:38:47.723Z
Thank you @Taufi and BB King . 
I was not sure if this can practically happen, so was wondering. 

Though, I'd love to know if this situation is possible in real life?
Maverick33
CC BY-SA 3.0
2017-06-06T15:59:33.410Z
Possible duplicate of [Calculating rate of growth of per capita income](https://economics.stackexchange.com/questions/9087/calculating-rate-of-growth-of-per-capita-income)
luchonacho
<gdp><economic-growth>
Increase in per capita GDP always means GDP is growing?
Maverick33
# Increase in per capita GDP always means GDP is growing?

(Asked by: username_0 on 2017-06-06)

This question was asked in very popular civil services examination.

> Question is : Whether the following statement is correct or not?
> Statement : If a country is experiencing increase in its per-capita
> GDP, its GDP must necessarily be growing?

The approach I applied is that, in a country like Syria, if mass emigration happens then population will decrease and at the same time GDP might not decrease with same rate. so this statement will be false.

I know my assumption is not too correct, so ignoring that, please help me arrive in correct answer.

**Tags:** gdp, economic-growth

> **Comments:**
> **username_1**: What do you mean your assumption is not correct?  
> **username_0**: I'm not good in such questions/topics, so I'm just afraid if this is right way to think or not.  Moreover I didn't want this particular assumption to prevent better examples coming from more qualified people here.  
> **username_2**: I am not sure I understand what you are asking, but if $G_p = G/(population)$ is the per-capita GDP then $G_p$ increases if the population shrinks or the GDP grows, as you pointed out. So the statement is not correct.  
> **username_3**: OP, your logic is correct, The statement is false, because the increase in GDP per capita could be due to a population decrease.  
> **username_0**: Thank you @username_2 and username_3 .  I was not sure if this can practically happen, so was wondering.   Though, I'd love to know if this situation is possible in real life?  
> **username_4**: Possible duplicate of [Calculating rate of growth of per capita income](https://economics.stackexchange.com/questions/9087/calculating-rate-of-growth-of-per-capita-income)  

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## 1 answers

### Answer by username_5 on 2017-06-06. Score: 3

Your reasoning seems correct.

if we consider that *Gp=G/(population)* and we know that Gp is increasing then we have the following possibilities:

* if *(population)* is static or growing then we can conclude that G must necessarily be growing
* if *(population)* is decreasing then G can be either static or actually decreasing slower than *(population)*. In this case, the statement on the question fails


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