In a statement released today, the Organization for Economic Co-operation and Development (OECD) says the decline in real “per capita” household income contrasts with the trend in real “per capita” gross domestic product (GDP) (per person), which increased by 0.2% in the first quarter.
This is the fourth consecutive quarter where “per capita” GDP exceeds “per capita” household income, reducing the difference observed at the start of the pandemic.
Household income is now 2.9% higher than it was in the fourth quarter of 2019, while real GDP is 1.6% higher.
Among the G7 economies, the impact of inflation on households in the first quarter was particularly marked in France, where real “per capita” household income fell by 1.9%, and in Germany, where it fell by 1.7%.
Elsewhere in Europe, high domestic inflation has also contributed to sharp declines in real terms in household “per capita” income, such as in Austria (-5.5%) and Spain (-4.1%).
Among the G7 countries, Canada recorded the strongest growth in real household income “per capita” in the first quarter of 2022, with an increase of 1.5%, mainly due to growth in “compensation of employees” (wages and salaries of employees and employers + social contributions), which increased by 3.8% in nominal terms in the first quarter of 2022.
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