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Data Starter: Self-reported life satisfaction v real GDP per capita

Elizabeth Veal

10th January 2025

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How well correlated are life satisfaction and GDP per capita?

Using this OurWorldinData chart about life satisfaction and GDP per capita, answer the following questions:

  1. Using examples from the chart, explain the relationship between self-reported life satisfaction and GDP per capita adjusted for inflation.
  2. Afghanistan, Lebanon, Botswana, Turkey and Hong Kong all sit below the ‘correlation line of best fit’. What does this signify for these countries?

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.

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