"Real household income per capita in the OECD again rose by 0.3% in Q3 2025, while still lagging behind growth in real GDP per capita of 0.5%. Both figures are unchanged from the previous quarter. Among 20 countries for which data is available, 11 recorded growth, 8 recorded a decline, and 1 saw no change. However, growth of real household income per capita in the G7 area came to a halt, with most of the major economies recording a contraction."
"Among G7 countries, the United Kingdom observed the largest fall (-0.8%) in Q3 2025, driven mainly by increases in taxes on income and wealth, while real GDP per capita growth was flat (0.0%). In France and Canada, real household income per capita fell (-0.3% and -0.1%, respectively) as consumer price inflation picked up; at the same time, real GDP per capita expanded (0.4% and 0.5%, respectively)."
"By contrast, Italy observed an increase in real household income per capita (1.7%), driven by increases in remuneration of employees and net property income. Germany also showed growth (0.5%), driven mainly by remuneration of employees. Among other OECD countries, Hungary recorded the largest increase in real household income per capita (1.6%), with real GDP per capita also increasing (0.9%). The rise in real income was supported in part by the sustained growth in remuneration of employees, which alongside Poland was among the strongest the OECD has seen since Q4 2022."
Real household income per capita in the OECD increased by 0.3% in Q3 2025, remaining below real GDP per capita growth of 0.5%. Data for 20 countries show 11 with income growth, 8 with declines, and 1 unchanged. Growth across the G7 stalled, with the United Kingdom posting the largest fall (-0.8%) largely due to higher taxes on income and wealth. France, Canada and the United States saw real household income declines amid rising consumer inflation despite GDP per capita gains in most cases. Italy, Germany and Hungary recorded notable income gains, while the Netherlands experienced the largest decline (-1.6%).
Read at London Business News | Londonlovesbusiness.com
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