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Of the 21 OECD countries providing data, Hungary had the largest increase in real household income per capita in the second quarter of 2023.
Among these countries, real household income per capita rose for the fourth consecutive quarter, increasing by 0.5 percent in the second quarter of 2023, while real GDP per capita expanded by 0.4 percent, writes mfor.hu based on a report published by the Paris-based OECD (Organization for Economic Co-operation and Development) on Monday. While this is good news, it is a warning that the pace of growth in real per capita household income slowed in the second quarter of 2023 compared to the first quarter, when the pace was 1.4 percent.
Despite the overall increase in real per capita household income, the picture is mixed across OECD countries. Of the 21 countries for which data are available, real income expanded in the second quarter of 2023 in only 11, while it declined in ten.
Among the G7 economies, the only negative exception was Italy, where real household income per capita declined.
The largest G7 increase, of 1.2 percent, occurred in Canada, as workers and the self-employed benefited from higher earnings. The second largest increase was recorded in the United Kingdom (0.9 percent), driven by increases in social benefits and, to a lesser extent, compensation of employees. Although real household income per capita also increased in the United States, the second quarter rate of 0.5 percent was well below the 2.3 percent rate of the previous quarter.
OECD real household income per capita and real GDP per capita have been on an upward trend since the second quarter of 2022. While the two indicators diverged during the COVID pandemic, with real GDP per capita rising from its trough in the second quarter of 2020 and real household income per capita falling from the first quarter of 2021, they have now moved in the same direction. The upward trend since the second quarter of 2022 has been led by the US, the UK and France.
Among the other OECD countries, Hungary recorded the largest increase in real household income per capita in the second quarter of 2023 (3 percent), which the analysis attributes to easing inflationary pressures.
In contrast, real household income per capita fell by the largest amount in Poland (3.4 percent), while real GDP per capita also fell by 1.3 percent.
Via mfor.hu, Featured image: Pixabay