World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

Govt Support Measures Continue To Shield Household Income From Economic Impact Of COVID-19 In Second Quarter Of 2020

Despite the significant (10.6%) fall in real GDP growth per capita in the OECD area in the second quarter of 2020, growth in real household income per capita, which provides a better picture of changes in households’ economic well-being, increased by 5.3% on the back of COVID-19 government support measures.

Read the full release.

Most OECD countries saw household disposable income outperform GDP. While a majority recorded falls in both measures during the second quarter of 2020, Canada and the United States saw significant growth in household income per capita of 11.0% and 10.1% respectively, reflecting broad based monetary transfers to the household sector in response to COVID-19. Smaller increases in real household income per capita were also observed in Ireland (3.6%), Australia (2.7%) and Finland (1.1%).

Some care is needed in comparing movements across countries however, as the significant increase in household income for the United States reflects the large, but temporary, characteristics of the specific government support made in April 2020, namely the CARES Act of 2020. Indeed, the United States Bureau of Economic Analysis has already reported a decline of 4.4% in real disposable personal income for the third quarter of 2020.

For the OECD area, the significant divergence between household income growth and GDP growth resulted in the largest positive gap on record between the two measures (15.1 percentage points).

© Scoop Media

 
 
 
World Headlines

 

University of Auckland: Low-Lying Pacific Island Has More Land Above Sea Level Than In 1943

An inhabited island in the low-lying Pacific nation of the Marshall Islands, which are thought to be at risk of being inundated by rising sea levels, has actually increased in size since 1943, scientists say. And the increase in area above sea level is likely ... More>>

APEC : Leaders Issue Kuala Lumpur Declaration

The leaders of the 21 APEC member economies issued the Kuala Lumpur Declaration following the first-ever virtual 27th APEC Economic Leaders’ Meeting chaired by Malaysian Prime Minister Muhyiddin Yassin. Convening for the first time since the ... More>>

UN: Appeals For $35 Billion To Help World’s ‘Most Vulnerable And Fragile’ In 2021

UNOCHA/HFO A family flees the violence in Idlib, Syria. (file) A record 235 million people will need humanitarian assistance and protection next year, a near- 40 per cent increase on 2020 which is “almost entirely from COVID-19”, the UN’s emergency ... More>>

OHCHR: UN Committee Issues Recommendations To Combat Racial Profiling

The Committee on the Elimination of Racial Discrimination today published its guidance to combat racial profiling, emphasizing, among other issues, the serious risk of algorithmic bias when artificial intelligence (AI) is used in law enforcement. The ... More>>