Global economy

Household income edges up in Q3 2020

04/02/2021 PNG

A sharp 9.1% rise in real GDP per capita in the OECD area in the third quarter translated into a much smaller increase of just 0.6% in real household income per capita, a measure which helps gauge people’s economic well-being.

The slow growth reflects marked decreases in household income levels in the US and Canada of -4.2 and -3.6% respectively, whereas household income rebounded sharply in Italy by 6.4%, UK by 5.1%, Germany by 4.3% and France by 3.5%, all after two quarters of decline. By contrast, household income in the US and Canada had risen by just over 10.5% and 11.2% in real terms in the second quarter.

See also: Growth and economic well-being: third quarter 2020, OECD