According to data released this Monday by the OECD, real household income per capita in the OECD increased for the fourth quarter in a row, rising 0.5% in the second quarter of 2023, while real GDP per capita rose 0.4%.
“However, the rate of growth in real household income per capita slowed in the second quarter of 2023 compared with the first quarter,” when there was growth of 1.4%, the OECD – Organization for Economic Co-operation and Development said in a statement released this Monday.
The OECD says that despite global growth in real household income per capita, the situation in OECD countries was mixed: of the 21 countries for which data is available, 11 recorded growth in the second quarter of 2023, and ten recorded a decline.
Among the G7 countries, real household income per capita increased in all countries for which data are available, with the exception of Italy.
Canada posted the largest increase in real household income per capita (1.2%), driven by rising wages for wage earners and self-employed workers, which partially offset the decline in the first quarter of 2023.
The second largest increase was recorded in the UK (0.9%), driven by increases in social benefits and, to a lesser extent, employee benefits. On the other hand, in the US, real per capita household income growth slowed to 0.5% in the second quarter of 2023, down from 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 have diverged during the Covid-19 pandemic, with real GDP per capita rising from a low in the second quarter of 2020 and real household income per capita falling since the first quarter of 2021, they are now moving together.
The upward trend from the second quarter of 2022 is driven by the United States, 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 inflation pressures eased.
Poland recorded the largest decline in real household income per capita (-3.4%), while real GDP per capita also fell (-1.3%).
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.