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The actual income of households per capita decreased in many European countries In the first quarter of 2025, compared with the previous quarter.
Among the lost – Greece, where one -time income decreased by 1.9% – the third worst achievement After -4.5% Portugal and -2.1% of Austria.
On the contrary, the actual GDP per capita increased in most European countries.
Household income is available the total amount of money available to households for expenses After deducting taxes and social security contributions. People use this income to satisfy their needs or save. It includes wages and wages, self -service income and non -integrated enterprises, pensions, social benefits and profit from financial investments. According to the OECD, this is an objective measure of material quality of life.
In the first quarter of 2025, among the 16 European countries available in ten, a decrease in the actual income of households per capita, and six recorded an increase. Hungary noted the greatest increase, by 1.9% compared to the previous quarter. Belgium (1.3%), as well as Denmark and Italy (1% each) also recorded a wonderful increase.
Italian income, received “from the shrinkage of the previous quarter, is mainly supported by the payment of employees and net income,” OECR discovered.
The Netherlands (0.3%) and France (0.2%) also saw an easier increase in the real income of households.
The real income of households was reduced in the UK and Germany
Per capitaGDP This shows the size of the economy, while the income of households per capita shows that people actually get into their house. The actual growth is adapted to inflation, providing a more accurate picture of economic changes. Real changes in the income of households reflect the standard of life of people.
Great Britain and Germany reduced the actual income of households per capita, 1.3% and 0.4%, respectively. According to OECD experts, this is due to the fact that ” inflation Consumer prices destroy an increase in nominal income. “
In the United Kingdom, the decline was followed by a relatively strong increase by 1.5% in the fourth quarter of 2024, while in Germany the second quarterly decrease in a row of 0.4%.
Portugal recorded the greatest decrease in household income per capita by 4.5%. This is due to the “mainly increase in taxpayers” in accordance with the OECD. This increase in tax occurred after a decrease in the previous quarter as a result of changes in tax regime.
Households in Austria, Greece and the Czech Republic also decreased by 2.1%, 1.9% and 1.5%, respectively. Spain, one of the five largest economies in Europe, recorded a small decline by 0.2%.
Two Scandinavian countries, Sweden (-1.3%) and Finland (-0.4%) were also among those where the actual income of households per capita decreased in early 2025.
Real per capita GDP has increased in most countries
Among 27 countries, the real GDP per capita increased to 20 countries and decreased to seven – most of the time with a very small difference. In the EU, real per capita GDP increased by 0.5%, while the OECR registered a lesser increase of 0.1%.
Ireland increased by 7%, although it often stands out as an extreme case when comparing GDP from high foreign investment. As a result, economists use AEE, a measure that better reflects the real economic activity of Ireland.
Iceland (2%), Poland and Türkiye (as 0.8%) and the Czech Republic (0.7%) recorded an increase of more than 0.5%in real GDP per capita. Most other increase remained at 0.3% or lower.
Denmark (-1.4%) and Luxembourg (-1.3%) recorded the greatest decrease in the real GDP per capita.
Among the five largest economies in Europe, quarterly changes in the first quarter of 2025 varyed from 0.1% in France to 0.5% in the United Kingdom.