Actual family earnings per capita grew by 0.6% within the OECD within the fourth quarter of 2022, exceeding progress in actual GDP per capita of 0.1% (Determine 1). Regardless of average progress within the third and fourth quarter, on an annual foundation 2022 actual family earnings per capita fell by 3.8% within the OECD, the most important annual decline because the starting of the sequence.
Family earnings outcomes different broadly throughout OECD international locations in This fall 2022. Of the 21 international locations for which knowledge is offered, eight recorded a rise in actual family earnings per capita, whereas the opposite 13 recorded a fall. Amongst G7 economies for which knowledge is offered, the UK noticed the most important enhance in actual family earnings per capita in This fall 2022 (1.2%), pushed by wage progress and authorities assist for family power consumption. Canada, France and the US additionally reported will increase in actual family earnings per capita, exceeding the efficiency of GDP per capita, which grew by 0.5% in the US and contracted in Canada and France (Determine 1). Conversely, actual family earnings declined by 3.5% in Italy as spiking power costs in This fall 2022 led to excessive inflation, undermining family earnings when measured in actual phrases.
In 2022 as a complete, actual family earnings per capita fell by 3.9% within the G7 economies (Determine 2). The biggest lower was in the US (-6.0%), the place COVID-19 associated authorities help paid to households in 2021 ceased. Amongst different OECD international locations (Determine 3), Chile noticed the most important decline in actual family earnings per capita in 2022 (-15.1%), pushed by the discontinuation of pandemic-related early pension withdrawals permitted in 2021.Even in economies that weren’t affected by the top of pandemic-related help programmes, will increase in inflation undermined family incomes in actual phrases in 2022[1], regardless of the expansion in GDP per capita.
[1] Extra info on the position inflation performs when measuring family financial well-being is offered on this weblog piece.
