According to the international body for international economic development and cooperation, the reason is “the flare-up of energy prices” which has led to “strong inflation”, affecting the availability of households in Italy
The real income of households in the OECD area is growing, but in Italy it is falling by 3.5% due to inflation caused by energy prices: this is the picture that the OECD, the international body for international economic cooperation and development, in the latest score sheet published today. According to data collected by the Paris-based organization, real household income in the OECD area as a whole grew by 0.6% in the fourth quarter of 2022, outpacing real GDP per capita growth by 0.1%. But the figure is highly variable depending on the countries surveyed. Of the organization’s 21 member countries for which results are available, eight report an increase in income in the fourth quarter of 2022, while thirteen show a decrease. Of the major G7 economies, the UK posted the largest increase (+1.2%), driven by wage increases and government support for energy consumption. Canada (+0.9%), France (+0.7%) and the United States (+0.8%) also report positive increases in real income
At the OECD level, the figure also shrank by 3.8%
Italy instead stands at -3.5%, putting it at the rear of the G7 ‘big ones’ behind Germany (-1%). Rode? – emphasizes the OECD – “the increase in energy prices” that has caused “strong inflation”, affecting the availability of households in the Belpaese. Over the past 12 months, despite moderate growth 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”, emphasizes the Parisian institution . Also on an annual basis, G7 countries’ real household income fell by 3.9%, with the largest contraction in the United States (-6%). A phenomenon that, according to OECD experts, is related to the end of government aid provided by Washington during the Covid-19 pandemic.
Source: TG 24 Sky
I am Lawrence Sickels and I work in the news industry. For the past few years, I have been writing for The News Dept, a web-based platform dedicated to providing readers with quality journalism. My main area of focus is covering economic news and business trends across the globe.
