British households are suffering the longest drop in living standards in the G7 as the economy fails to keep up with population growth, new data shows.
Gross domestic product (GDP) per person fell for four quarters in a row across 2023 in the UK and has been at 0pc or less since spring 2022, according to the Organisation for Economic Cooperation and Development (OECD).
Although data from the Office for National Statistics (ONS) shows that overall GDP rose by 0.1pc across 2023, on a per person basis it fell by 0.8pc.
This measure accounts for population growth, which in the UK was the second highest in the group of seven advanced economies.
The figures were in stark contrast to the G7 average, where GDP per capita rose by 1.2pc last year.
Canada, which recorded the highest rate of population growth also had the steepest drop in living standards in the G7, with GDP per capita falling by 1.7pc across 2023.
However, here the drop has been much less protracted than in the UK, with real GDP only falling on a per person basis for three quarters in a row.
The UK economy fell into a technical recession at the end of last year, defined as two consecutive quarters of falling GDP, but monthly data so far in 2024 shows that the economy has returned to headline growth.
Emotional_Scale_8074 on
This is on a per capita basis in 2023? When do we have official population estimates to?
jx45923950 on
“Now, please vote for the party who has overseen and largely caused those years of dropping living standards”
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British households are suffering the longest drop in living standards in the G7 as the economy fails to keep up with population growth, new data shows.
Gross domestic product (GDP) per person fell for four quarters in a row across 2023 in the UK and has been at 0pc or less since spring 2022, according to the Organisation for Economic Cooperation and Development (OECD).
Although data from the Office for National Statistics (ONS) shows that overall GDP rose by 0.1pc across 2023, on a per person basis it fell by 0.8pc.
This measure accounts for population growth, which in the UK was the second highest in the group of seven advanced economies.
The figures were in stark contrast to the G7 average, where GDP per capita rose by 1.2pc last year.
Canada, which recorded the highest rate of population growth also had the steepest drop in living standards in the G7, with GDP per capita falling by 1.7pc across 2023.
However, here the drop has been much less protracted than in the UK, with real GDP only falling on a per person basis for three quarters in a row.
The UK economy fell into a technical recession at the end of last year, defined as two consecutive quarters of falling GDP, but monthly data so far in 2024 shows that the economy has returned to headline growth.
This is on a per capita basis in 2023? When do we have official population estimates to?
“Now, please vote for the party who has overseen and largely caused those years of dropping living standards”
-also The Telegraph.