The reason, according to the international body for international economic cooperation and development, is “the flare-up in energy prices” which has caused “strong inflation”, with consequences on the availability of households in Italy
The real income of families in the OECD area is growing but in Italy it is decreasing by 3.5% due to inflation due to energy prices: this is the photograph taken by the OECD, the international body for international economic cooperation and development , in the latest scoresheet published today. According to data collected by the Paris-based organization, real household income grew by 0.6% in the OECD area as a whole in the fourth quarter of 2022, thus exceeding the growth of real GDP per inhabitant by 0.1%. But the figure is highly variable depending on the countries examined. Out of the organization’s 21 member states for which results are available, eight report an increase in income in the fourth quarter of 2022 while thirteen are declining. Among the large G7 economies, the United Kingdom achieved the most significant increase (+1.2%), driven by wage growth and public support for energy consumption. Canada (+0.9%), France (+0.7%) and the United States (+0.8%) also report positive increases in real income
The figure also contracted by 3.8% at the OECD level
Italy is instead at -3.5%, bringing up the rear among the ‘big’ of the G7 behind Germany (-1%). Reason? – underlines the OECD – “the flare-up in energy prices” which has caused “strong inflation”, with consequences on the availability of households in the Belpaese. In the last twelve months, despite the moderate growth achieved in the third and fourth quarters of 2022, the figure has also contracted by 3.8% at the OECD level, “the sharpest annual decline since the beginning of the series”, underlines the Parisian institution . Also on an annual basis, among the G7 countries, real household income fell by 3.9%, with the most significant contraction in the United States (-6%). A phenomenon linked according to OECD experts to the end of government aid granted by Washington during the Covid-19 pandemic.