Household Income Gets a Small Push – but Not All Are Smiling
In the buzzing quarter of 2023, real household income per capita nudged up by 0.5%, coming after a little dip of 0.2% the previous quarter. It’s a tidy win because it outpaced real GDP per capita, which only grew by a modest 0.2%.
Who’s Feeling the Paycheck Boost?
- 11 countries saw their incomes climb.
- 6 countries saw a fall.
- 2 countries stayed pretty much the same.
In the G7, the United Kingdom, France and United States took the cake, celebrating gains in real household income. The other G7 members were a bit flatter.
UK: A Silver Lining Amid a GDP Downpour
Britain’s real household income ticked up by 0.5% in Q4 2023. Unfortunately, GDP per capita was on a down‑trend for four straight quarters. The silver lining? Social benefits—other than neat transfers in kind—were the real heroes behind the boost.
France and the U.S. – Up, Up, and Away!
Both nations leaned on their plates of real household income summers. France saw a tidy 0.7% rise, and the United States followed close behind with a 0.4% jump after a modest dip last quarter.
Canada’s Two‑Step Decline
Canada veered into a double decline: real household income fell by -0.7%, and real GDP was down by -0.8% in Q4 2023. The culprit? An unstoppable tidal wave of population growth that outpaced the income surge.
Italy and Germany – A Mixed Bag
Italy’s real income dipped a little, shrinking by -0.4%. Germany’s story was a mixed one: household income was flat, but GDP per capita slipped by -0.6%.
Full‑Year Take‑away: A Little Brighter Day After a Dark Year
Across the OECD, real household income per capita was up a healthy 1.2% in 2023—recouping a record slump from 2022 when pandemic aid was winding down. GDP per capita, meanwhile, grew by 1.1%. This whole-year uptick came with the help of slower inflation, making everyday budgets feel a bit easier.
So, while budget planners still need to keep an eye on the numbers, it’s fair to say that most households have a slightly larger pocket to spend on that extra coffee today. Cheers to a modest lift in paychecks!
