Financial Glossary Header Image

Standard Of Living

Updated on March 19, 2023


Standard of living of a person refers to their ability to afford necessities and luxuries and is often viewed through their consumption patterns. The most common form of measuring the standard of living of a person is through the GDP per capita of the country. It is calculated as a ratio of the GDP of a country and its total population. Countries having a higher standard of living are ranked as the top countries preferred for residence while countries with a lower standard of living are considered to be poor countries.