Real per capita household income rose in OECD countries for the fourth consecutive quarter – Economy

Real per capita household income in the OECD rose for the fourth straight quarter, rising by 0.5% in the second quarter of 2023, while real GDP per capita grew by 0.4%, according to data released Monday by the OECD. Economic and development.

“But the pace of growth in real per capita household income slowed in the second quarter of 2023 compared to the first quarter,” where there was an increase of 1.4%, the OECD said in a statement. Released this Monday.

The OECD indicates that despite the global increase in real per capita household income, the situation was mixed in OECD countries. Of the 21 countries for which data are available, 11 countries recorded an increase in the second quarter of 2023, while Ten countries recorded an increase in real household income per capita. He falls.

Among the G7 economies, real per capita household income rose in all countries for which data are available, except Italy.

Canada recorded the largest increase in real household income per capita (1.2%), driven by growth in wages for employees and the self-employed, which partially reversed the decline in the first quarter of 2023.

The second largest increase was recorded in the United Kingdom (0.9%), driven by increases in social benefits and, to a lesser extent, employee wages. On the other hand, in the United States, real per capita household income growth slowed to 0.5% in the second quarter of 2023, compared to about 2.3% in the previous quarter.

Real household income per capita and real GDP per capita in the OECD have been on an upward trend since the second quarter of 2022.

Although the two indicators have diverged during the COVID-19 pandemic, with real GDP per capita rising from its lows in the second quarter of 2020 and real per capita household income declining since the first quarter of 2021, they are now evolving together.

The upward trend since the second quarter of 2022 has been driven by the United States, the United Kingdom and France.

Among other OECD countries, Hungary recorded the highest growth in real household income per capita in the second quarter of 2023 (3.0%), as inflationary pressures eased.

Poland recorded the largest contraction in real household income per capita (-3.4%), with real GDP per capita also declining (-1.3%).