Despite continued GDP growth, household income declined slightly in the fourth quarter of 2021, the Organization for Economic Cooperation and Development (OECD) reports.
The Paris-based group said GDP per capita rose by 1.2% in the fourth quarter, but real household income per capita fell by 0.3%.
For the third consecutive quarter, GDP growth outpaced household income, which has stagnated for the past six months, the OECD noted.
Among other factors, the weakness in household income reflects the decline in pandemic-related government supports, it said.
Of the G7 economies, Canada recorded the largest fall in household income in the fourth quarter — income dropped 2.4% quarter over quarter — “as government transfers to households continued to decline,” the OECD said.
The U.S., U.K. and Germany also recorded decreases, while household income rose in Italy and France (Q4 data for Japan is not yet available).