In the second quarter of 2020, Spain recorded a 7.46% decrease in disposable income per head compared to the three previous months, which represents the third deepest quarterly decline among all countries of the Organization for Economic Cooperation and Development (OECD) whose data were published this Thursday, only surpassed by the decline of 10.36% in Chile and 8.9% in Sweden.
On average, the countries that are part of the club of the most advanced economies experienced an increase of 5.25% in disposable income per head over the first three months of 2020, when it had stagnated, despite the fact that GDP of the OECD suffered a contraction of 10.6% between April and June, after a fall of 2% between January and March.
In this sense, the OECD highlights the effect of different support measures introduced by governments to cushion the impact of the recession caused by the pandemic and the restrictions implemented, which allowed “in most OECD countries” that the evolution of disposable income was better than that of GDP.
In fact, in countries like Canada and United States There was strong growth in disposable income of households of 11.04% and 10.1%, respectively, as a result of cash transfers to households in the context of the response to the crisis, while also Increases, although less important, were seen in Ireland (+ 3.57%), Australia (+ 2.68%) and Finland (+ 1.1%).
Apart from Chile (-10.36%), Sweden (-8.9%) and Spain (-7.46%), the largest falls in household income in the second quarter were recorded in Italy (- 7.16%) and Slovenia (-6.89%).
The real disposable income per inhabitant represents the set of incomes received, after deducting taxes and social contributions and including monetary social benefits such as the collection of unemployment. The data reveals the maximum amount that a person can spend to consume without reducing their net wealth.
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