The second quarter of 2024 marks a significant moment for Italy, with real household income growing at a rate above the Organisation for Economic Co-operation and Development (OECD) average. This data reveals interesting economic trends and invites a deeper reflection on the socio-economic dynamics underway in the country.
According to the data released, real household income in OECD countries increased by 0.4%, a sharp decline from 1.3% in the previous quarter. During the same period, gross domestic product (GDP) per capita showed modest growth of 0.3%. Of the fifteen countries analyzed, eight recorded increases while seven saw a contraction. In the G7 context, Italy performed well, with real income per capita increasing by 1%, maintaining the same pace as the previous quarter. The United States saw a more modest increase of 0.4%, a decrease from 1.2% in the first quarter. In Europe, France showed an increase of 0.3%, while Canada and Germany contracted.
The OECD highlights that Italy’s positive trend is in line with that of the United Kingdom, which saw an equivalent increase.
Among the OECD member states, Portugal stands out for having had the largest increase in real household income per capita in the second quarter of 2024, with an impressive 2.1%. This result is mainly attributable to the growth in employee compensation; from the fourth quarter of 2021 to the second quarter of 2024, wages in Portugal increased by 23% in real terms. In contrast, the Netherlands suffered the largest contraction with a decline of 2.3%, mainly due to a decrease in capital income and an increase in income and wealth taxes.
The positive trend in real income in Italy offers grounds for optimism but also raises questions about potential future challenges. The ability to sustain this growth will depend on the economic policies adopted and the stability of global markets. As international economic scenarios continue to evolve, it will be essential to monitor how these dynamics will affect the well-being of Italian families in the coming quarters.
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