EU real household incomes per capita have risen by about 7% since the pre-pandemic period, but changes between 2019 and 2024 vary widely across countries.
Nordic countries generally recorded smaller gains, while many Eastern and Central European countries saw stronger growth. Trends over the past decade also differ across Europe.
So how have household real incomes per capita changed across Europe over the last 10 years, from 2014 to 2024? How does this compare with the pre-pandemic period? And which countries have the highest household income per person in purchasing power standards (PPS), according to Eurostat?
They increased by 17% between 2014 and 2024. Growth largely stalled in 2020 due to the COVID-19 pandemic, as in many countries, with some even recording declines.
It then resumed gradually, resulting in a 7% increase from pre-pandemic levels between 2019 and 2024.
Household income per person is calculated by dividing a household’s adjusted gross disposable income by the total population. So what is that exactly?
It shows how much money households have available to spend or save. It is measured after income taxes and pension contributions are deducted.
Crucially, it also includes the value of services such as education and healthcare that households receive free of charge from governments and non-profit organisations.
‘Real’ means the nominal value is adjusted for price increases, using the deflator of actual household final consumption expenditure.
Croatia recorded the strongest growth in real household incomes per person over these five years at 26%. Malta recorded 24%, Hungary 20%, Romania 19% and Poland recorded a 16% rise, ranking them among some of the highest increases, all above 15%.
Apart from Malta, these countries are outside the euro area, and the growth also reflects changes in national currencies. This is not the case for Sweden and Denmark.
The three Nordic countries are at the bottom of the ranking. Sweden at 1%, Finland at 2% and Denmark at 3% recorded only modest growth. According to the OECD, at the height of the COVID-19 crisis, unemployment rates rose more in Nordic countries than in many other European countries.
The EU’s ‘Big Four’ economies also remain below the EU average. France and Spain (both 6%) are just under the EU average, while Italy and Germany (both 4%) are closer to Nordic levels.
Overall, non-euro countries recorded stronger growth between 2014 and 2024, with Romania reaching 76%. Among the seven countries with the highest growth, Malta is the only euro area member at 55%.
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