Household income growth slightly outpaced economic growth last year, according to new data from the Organization for Economic Cooperation and Development (OECD).
The Paris-based group reported that real household income on a per capita basis grew by 0.5% in the fourth quarter of 2024, and was up 1.8% for the full year — edging out per capita real GDP growth of 0.4% and 1.7%, respectively.
While fourth quarter growth picked up, rising from the 0.2% growth recorded in the third quarter, the OECD said that results were mixed across the 19 countries it tracks. Nine countries saw growth accelerate, while it slowed in seven markets and was flat in three others.
“Among G7 economies, real household income per capita grew in only two countries, while the rest either contracted or saw no growth,” the OECD reported.
For instance, household income growth ground to a halt in Canada, dropping from 1.4% in the third quarter to 0% to end the year, it noted.
France also saw income growth drop to zero, and growth turned negative in Germany and Italy, while it slowed to 0.3% in the U.S. (below the 0.5% increase in GDP).
For 2024 overall, almost all countries reported positive income growth, the OECD said “as inflation slowed compared with the previous year.”
Portugal recorded the largest increase in per capita income, up 6.7%, driven mainly by combination of higher workplace income and lower taxes, it noted.