Household income rebounds to end 2023: OECD

Following a decline in the previous quarter, household incomes recovered at the end of 2023, the Organization for Economic Cooperation and Development (OECD) reports.

In the fourth quarter of 2023, real household per capita income rose by 0.5%, the OECD said — offsetting the 0.2% drop that was recorded in the prior quarter.

The growth in household income also surpassed the growth in real GDP per capita, which came in at 0.2% in the fourth quarter.

For the full year, real household income per capita grew by 1.2% across the OECD, while GDP per capita increased by 1.1%, the Paris-based group noted.

“The annual rise in real household income per capita came as inflation slowed compared with the previous year,” the OECD said.

For the G7, household income was up in the U.S., the U.K., and France in the fourth quarter.

However, Canada suffered fourth-quarter drops in both real household income and real GDP per capita, which were down 0.7% and 0.8%, respectively.

The OECD pointed to “continued strong population growth” as the central reason for the drops in per capita income and GDP for Canada in the fourth quarter.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.