GDP relates to household spending
Comparing GDP (constant LCU), per unit of GDP with Households and NPISHs Final consumption expenditure (current LCU), per capita across 181 countries, 2011–2025.
- Rank correlation
- +0.83
- Holding size constant
- +0.82
- Countries compared
- 181
- Period
- 2011–2025
What might link these
The relationship between GDP and household consumption expenditure may be driven by economic activity and availability of disposable income. However, a careful reader should be cautious about inferring causation, as other factors like government policies, interest rates, or cultural influences could also play a role. A likely confounder is the level of urbanization.
Why this is not proof of anything
This is a correlation across countries, not an experiment. It cannot show that either indicator causes the other, and both may simply follow a third thing. Correlation does not imply causation, and this relationship may be influenced by other underlying economic or demographic factors.
The second figure above repeats the measurement with national population and income held constant. It is the more conservative number: a relationship that largely disappears there was mostly telling you that larger, richer countries have more of most things.
How this was measured
Both indicators were ranked across every country reporting each, and the two rankings compared — ranks rather than raw values, because a handful of very large countries can otherwise manufacture a relationship on their own. The calculation is arithmetic over figures already published on this site; the commentary above is drafted from the two indicator names and the resulting coefficients.