Perikasvu

Perikasvu is a Finnish term that translates to "per capita growth" or "growth per person." It is a measure of economic development that quantifies the increase in a country's or region's economic output relative to its population. This metric is derived by dividing the total economic growth, usually represented by the Gross Domestic Product (GDP), by the total population.

The concept of perikasvu is crucial for understanding how living standards change over time. A positive perikasvu indicates that the economy is expanding at a faster rate than the population, suggesting that, on average, individuals are becoming wealthier. Conversely, negative perikasvu implies that the population is growing faster than the economy, potentially leading to a decline in average living standards.

Economists and policymakers use perikasvu to assess the effectiveness of economic policies and to compare the progress of different nations. It provides a more nuanced view than total GDP growth alone, as it accounts for population changes. For instance, a country might show a high GDP growth, but if its population is growing even faster, its perikasvu might be low, indicating little improvement in individual economic well-being. Perikasvu is therefore a key indicator for evaluating sustainable development and societal progress.