“We are on the right track” –

Incomes in Italy are growing faster than inflation. This is not the government’s statement, but the data from the OECD, the Organization for Economic Cooperation and Development. “The economic data for the first quarter of 2024 give us good news for Italy: the real income of Italian families grew by 3.4%, marking the strongest increase among all the G7 economies”, wrote Prime Minister Giorgia Meloni on social media. “This means that incomes in Italy are finally growing faster than inflation, after years of families losing purchasing power. This result, well above the OECD average of 0.9%, is also the result of the government’s policies that have concentrated most of the available resources on renewing contracts, increasing pensions, supporting wages by cutting the contribution wedge and reducing personal income tax, and strengthening social transfers in kind. There is still a lot to do, but these signs tell us that we are on the right track. We continue to work with determination for an increasingly fair and prosperous Italy”, claims the prime minister.

But what does the international body say in detail? Real per capita household income in the OECD area increased by 0.9% in the first quarter of 2024, compared to 0.3% in the previous quarter, while real GDP per capita grew by 0.3%. All G7 economies recorded an increase in real per capita household income in the first quarter of 2024. Italy recorded the strongest increase (3.4%), driven by an increase in employee compensation and social transfers, reversing the decline of the previous quarter. Germany also recorded a strong increase in real per capita household income compared to the previous quarter (1.4% versus 0.1%), partly driven by an increase in employee compensation, while real GDP per capita increased (0.2%) compared to the previous quarter (minus 0.6%).

Canada saw an increase in real household income per capita (0.6%), a rebound from the fourth quarter of 2023 (-0.5%), while real GDP per capita declined for the fourth consecutive quarter (-0.2%). France saw growth in real household income per capita (0.6%), mainly supported by an increase in basic pension benefits to keep pace with inflation. The United Kingdom and the United States saw smaller increases in real household income per capita (0.3% and 0.2%, respectively). Most other OECD countries also saw an increase in real household income per capita in the first quarter of 2024. Poland saw the largest increase (10.2%). The largest contraction was in Greece (-1.9%), although real GDP per capita grew (0.9%).