British households have been worst affected by the global economic downturn amongst richer nations according to new figures released today.
The United Kingdom GDP’s since the fourth quarter of 2019 dropped to -1.2, the lowest out of the seven nations, while its real income fell by -3.5, also the lowest.
The figures were published by the OECD (Organisation for Economic Co-operation and Development), which outlined that across its seven member-nations, real household income per head dropped by 0.5 per cent in the second quarter of 2022, while there was growth of 0.3 per cent in real GDP.
This was the third consecutive quarter real household income declined, but Britain was particularly hard hit with rising costs for food and energy.
The UK’s real GDP rose just 0.2 per cent in the last quarter while household income was down 1.1 per cent, compared to the overall OECD income of 0.5 and GDP drop of 0.3.
However, Britain’s cumulative growth in GDP since 2019 dropped by -1.2, the lowest out of the seven nations, while its real income fell by -3.5, also the lowest.
According to the OECD, “rising consumer prices continue to undermine growth in household income when measured in real term, while the second quarter of 2022 was “the fourth consecutive quarter of falling real income for households in the United Kingdom”.
“The declines over this longer period reflect both the reduction in pandemic-related government assistance and rising consumer prices faced by households.
This comes as the United Kingdom continues to battle soaring inflation of more than 10 per cent with interest rates now set at three, putting more pressure on mortgage-buyers and borrowers.