Portuguese families see highest real income growth in OECD in 2024
The real income per capita in Portugal showed the largest increase, significantly ahead of other nations.
Portuguese families experienced the largest increase in real income among OECD countries in 2024, with a rise of 6.7%.
This increase was driven primarily by higher wages and lower taxes.
The OECD’s latest data, released Tuesday, revealed that Spain (3.55%) and Hungary (3.1%) followed Portugal, while the overall OECD average growth was 1.8%, up from 1.7% in 2023.
The growth in Portugal came amid a global trend of slowing inflation.
In contrast, real household income in Australia declined by 1.8% due to higher taxes and interest rates, although this was an improvement over the 5.1% drop in 2023.
Finland also saw a decrease of 0.44% in real income.
Across the OECD, most countries saw positive growth in household income, with the exception of Finland and Australia.
The real income per capita in Portugal showed the largest increase, significantly ahead of other nations.
The OECD attributed the global growth to higher wages and reduced taxes.
However, economic performance varied within the G7, with only the UK and the US reporting positive growth in real household income, while Italy and Germany experienced declines.
The OECD noted that real GDP per capita grew slightly in the fourth quarter of 2024, with most countries seeing mixed results.
Despite a general rise, several nations, including Italy and Germany, struggled with negative or stagnant growth.
The organization concluded that, overall, most countries experienced a positive trend in real income growth in 2024, with Portugal’s remarkable 6.7% increase standing out as the highest.