While real per capita income saw an upward trend across OECD countries in the first quarter of the year, Greece stood out for a more troubling reason. Despite nominal increases in the minimum wage, the disposable income of Greek households experienced the steepest quarterly decline among all OECD member nations.
In the first quarter of 2024, OECD countries saw a 0.9% increase in real per capita income, up from 0.3% in the previous quarter, while real per capita GDP rose by 0.3%.
However, Greece stands out with a different story. According to the OECD, Greece experienced the sharpest decline in real per capita household income, which fell by 1.9%, despite a 0.9% increase in real per capita GDP.
Only five other countries reported a decrease in real disposable income: the Czech Republic and Belgium each saw a 1.4% drop, Australia and Hungary experienced a 0.7% decline, and Denmark reported a 0.2% decrease.
Greece’s real per capita income now sits at just 79.65% of its level from the first quarter of 2007, well below the OECD average of 122%. Additionally, Greece’s real per capita GDP remains below 2007 levels, currently at 84%.
In contrast, all G7 economies saw an increase in real per capita household income during the same period.
Italy recorded the largest rise at 3.4%, thanks to higher wages and increased in-kind social transfers, reversing its previous decline.
Germany also saw a significant gain, with real per capita household income up by 1.4% compared to 0.1% in the last quarter, partly due to higher wages.
Among other countries, Poland posted the most substantial increase at 10.2%, driven by wage growth, social benefits excluding in-kind transfers, and property income.
