Why is GNI per capital a better measure of standard of living than GDP? GNI per capita reflects all of the income within the economy. GNI per capita indicates how much each person makes on average. GNI per capita represents the value of goods and services in the economy. GNI per capita reflects the total market value of goods and services in the economy.

GNI (Gross National Income) per capita indicates how much each person makes on average (by taking the final income of a country in a year and dividing it by its total population), whereas GDP (Gross Domestic Product) determines the economic performance of a whole country or region.

Therefore, to better measure the standard of living, GNI per capita gives a much more real approximation of the "wealth" of each citizen (on average).