Household income in OECD region accelerates in Q2

By Gokhan Ergocun

ISTANBUL (AA) - Real household income per capita in the Organization for the Economic Cooperation and Development (OECD) region rose 0.4% in the second quarter of 2025, while real GDP per capita grew slightly faster at 0.5%.

The OECD also said on Monday that both measures showed an acceleration compared with the previous quarter, when they each grew by 0.1%.

"The overall acceleration in real household income per capita reflected stronger growth in most OECD countries," it said, adding that among the 19 countries for which data is available, 12 showed higher growth than in the previous quarter, while seven saw a slowdown.

In the G7, most countries saw increases in real household income per capita in the second quarter of 2025; income growth rebounded to 0.3% in Germany and the UK, from contractions of 0.5% and 0.8% respectively in the first quarter.

In Germany, the rebound was mainly driven by higher government social benefits received and lower social contributions paid, and in the UK, it reflected an increase in employee salaries and a reduction in paid taxes.

In contrast, over the same period real GDP per capita fell in Germany with 0.2% while it grew in the UK with 0.2%.

In France, growth in real household income per capita accelerated from 0% in the first quarter to 0.3% in the second.

Growth in real household income per capita also went up in the United States (from 0.5% to 0.6%) and Canada (from 0.1% to 0.2%), even as real GDP per capita contracted in Canada (-0.4%).

Meanwhile, Italy experienced a slowdown in real household income per capita growth, from 0.8% in the first quarter to 0.3% in the second.

Among other OECD countries, Poland showed the strongest growth in real household income per capita with 3.1%, and the largest declines in real household income per capita were in Chile and the Netherlands with both minus 0.6%.