Household income growth slowed sharply in the first quarter among Organization for Economic Cooperation and Development (OECD) countries, according to new data.
The Paris-based group reported that both income and GDP growth slowed in the first three months of 2025, with real household income and real GDP rising by just 0.1% (per capita) in the first quarter — a slowdown from 0.6% growth in incomes and 0.4% growth in GDP recorded in the previous quarter.
Additionally, the OECD noted that while about half the countries it tracks recorded a gain in household incomes, the other half saw incomes fall.
In the G7, most countries recorded an increase in real household income in the first quarter, it noted — led by a 1% jump in Italy — but the U.K. and Germany both saw incomes decline.
Canada experienced a modest 0.1% gain in household income, trailing a 0.4% increase in real GDP, the OECD noted.
Whereas in the U.S., incomes were up 0.5%, despite a 0.3% contraction in real GDP for the quarter, it said.
Outside of the G7, Chile saw the strongest growth in household incomes, the OECD reported, with real per capita income rising 3.1% in the quarter, “as consumer price inflation fell and real GDP per capita increased (0.5%).”