Question

The Central African Republic has a GDP of 1,107,689 million CFA francs and a population of 4.862 million. The exchange rate is 284.681CFA francs per dollar. Calculate the GDP per capita of Central African Republic.

Short answer

The GDP per capita for Central African Republic would be $800.28.

Step-by-step solution

Step 1. Introduction

GDP is a measure of economic growth which includes the total value of final goods and services produced in a region in a given period. GDP per capita indicates the average GDP of the region.

Step 2. Explanation

The GDP for Central African Republic is 1,107,689 CFA Francs.

The population for Central African Republic is 4.862 million.

The GDP can be divided by the exchange rate to get the value of GDP in dollars.

$\frac{1,107,689}{284.681}=\$3,890.98$

The per capita GDP in dollars can now be obtained by the ratio of GDP in dollars

$\frac{\$3,890.98}{4.862million}=\$800.28$