Households - statistics on income, saving and investment

Data extracted in November 2024.

Planned update: November 2025.

Highlights

Wages accounted for 36.8% of the EU’s household disposable income in 2023 and social benefits for 24.4%.

In 2023, the household saving rate was 13.2% in the EU and 14.1% in the euro area.

The EU’s household investment rate was 9.5% in 2023. The highest rates among the EU countries were 14.6% in Cyprus, 13.9% in Romania and 13.6% in Luxembourg.

Gross household saving rate, 2013–23

This article focuses on disposable income, saving and investment for households in the European Union (EU) and the euro area; note that there are complementary articles that provide information on financial assets and liabilities for households, for financial assets and liabilities of non-financial corporations and the distribution of profits and investment for non-financial corporations.

This article presents Eurostat statistics derived from European sector accounts, which form part of the European system of national and regional accounts (ESA 2010). Data are provided for the EU and the euro area, as well as for EU, EFTA and enlargement countries for the latest reference year available and for developments over the previous 10 years.

The time period covered by the analyses in this article is generally 2013 to 2023. The starting point for the time series (2013) was during the recovery from the global financial and economic crisis: economic activity, in real terms, was 5.0% above the 2010 low point. The time series ends in 2023, the year in which the COVID-19 pandemic ended. The final year in the period under consideration was also during a period of relatively high price increases (the cost-of-living crisis). The annual inflation rate in the EU was 6.4% in 2023, down from 9.2% in 2022, but still higher than in any other year since the time series began in 2001; the next highest rate was 3.7% in 2008.

General overview

This article provides a range of analyses of issues that impact on people’s everyday lives, detailing levels of gross household adjusted disposable income that are available for households to manage their budget. Overall household spending and/or saving are closely linked to general macroeconomic developments, including, among other factors, real wage growth, inflation and the risk of unemployment. Note that data presented in this article cover both the household sector and non-profit institutions serving households (NPISH); the latter form a relatively small institutional sector that includes charities, trade unions, religious and political groups.

Gross disposable income is the result of all current transactions before consumption, excluding exceptional resources/uses such as capital transfers, holding gains/losses and the consequences of natural disasters. It reflects the net resources, earned during the period, which are available for consumption and/or saving; in this article – unless otherwise stated – it is adjusted to take account of social transfers in kind. Adjusted gross disposable income includes the flows corresponding to the use of individual services which households receive free of charge from the government; these mainly include education, health and social security services, as well as housing, cultural or recreational services.

Gross household adjusted disposable income

The EU’s gross household adjusted disposable income was valued at €12 630 billion in 2023, which was equivalent to three quarters (73.5%) of the value of gross domestic product (GDP).

Germany accounted for the highest share of the EU’s gross household adjusted disposable income, 25.6% of the total, followed by France (18.1%), Italy (12.7%) and Spain (8.9%).

Figure 1 shows information for the development of gross household adjusted disposable income per inhabitant (taking into account population change due to natural change and migration) during the period 2003 to 2023. Gross household adjusted disposable income per inhabitant in the EU in nominal terms declined in 2009 as a result of the global financial and economic crisis: the real rate of change turned negative in 2010 and remained negative in 2011, 2012 and 2013 as the economic recovery wasn’t sustained. Thereafter, there was an upturn in both the EU and the euro area, with gross household adjusted disposable income per inhabitant increasing in both nominal and real terms every year from 2014 to 2021. In 2020, the 1st year of the COVID-19 crisis, the real rates of change remained positive, although considerably lower than in the preceding few years, but rebounded in 2021 to record a peak for the period under consideration: up 3.1% in the EU and up 2.9% in the euro area. In 2022, the development was notably different: in nominal terms, higher increases were observed than in 2021, up 6.7% in the EU and 6.4% in the euro area, while in real terms the 1st negative rates since 2013 were observed, down 0.5% in the EU and 0.4% in the euro area. In 2023, the nominal increases remained high, up 6.6% in the EU and 6.3% in the euro area, while there was no change (0.0%) in real terms.

A time series of gross household adjusted disposable income between 2013 and 2023 is provided in Table 1 of the annex; see the link later in this article.

Figure 1: Developments for gross household adjusted disposable income per inhabitant, 2003–23
(%)
Source: Eurostat (nasa_10_ki)

Gross household adjusted disposable income per inhabitant in Luxembourg was 2.1 times as high as in Slovakia

To compare gross household adjusted disposable income per inhabitant across countries effectively, an adjustment should be made to take account of price level differences. To do so, data are converted into purchasing power standards (PPS). The information presented in Figure 2 is based on data in PPS, but with the values then converted to a ratio between the values for each country and the EU average; the ratio for the EU average is set to equal 100.

In 2023, the highest level of gross household adjusted disposable income per inhabitant was recorded in Luxembourg (40.7% above the EU average having taken account of price level differences). Germany (24.3%), Austria (16.0%), the Netherlands (14.7%), Belgium (14.4%) and France (11.4%) were the only other EU countries (no information available for Bulgaria) to report levels of gross household adjusted disposable income per inhabitant that were more than 10.0% above the EU average (this was also the case for Switzerland and Norway (2022 data)), while Finland and Sweden were the only other EU countries where the gross household adjusted disposable income per inhabitant was above the EU average.

By contrast, there were 8 EU countries where the average level of gross household adjusted disposable income per inhabitant was more than 20% below the EU average in 2023. Among these, the lowest level of gross household adjusted disposable income per inhabitant was recorded in Latvia (63.2%). A notably lower level was recorded in Serbia (49.4%; 2022 data).

Comparing the EU countries with the highest and lowest ratios in 2023, the average level of gross household adjusted disposable income per inhabitant in Luxembourg was 2.2 times as high as that recorded in Latvia (no data are available for Bulgaria). Note however that a similar comparison for 2013 – just 10 years earlier – reveals that gross household adjusted disposable income per inhabitant in Luxembourg had been 3.4 times as high as in Romania (see Table 2 in the annex). For comparability, this ratio for 2013 was compiled for the same EU countries for which 2023 data are available; if Bulgaria is included, for which 2013 data are available, the ratio between the highest (still Luxembourg) and lowest (Bulgaria) values was 3.5.

A time series of gross household adjusted disposable income per inhabitant between 2013 and 2023 is provided in Table 2 of the annex; see the link later in this article.

Figure 2: Gross household adjusted disposable income per inhabitant, 2023
(EU = 100, based on data in PPS)
Source: Eurostat (nasa_10_nf_tr)

Having fallen to 36.1% in 2020 (from a peak of 37.1% in 2019), the share of net wages in the EU’s gross household adjusted disposable income partially recovered to 36.4% in 2021, 36.6% in 2022 and 36.8% in 2023

Figure 3 provides an analysis over time of the different contributions that were made by the various components which together make up gross household adjusted disposable income. In the EU, net wages (which consist of wages and salaries received by employees before tax, excluding social contributions paid by employers and employees) consistently accounted for the highest share of gross household adjusted disposable income between 2013 and 2023. The share of net wages was just over a third (within the range of 34.7% to 37.1%). The relative share of net wages in gross household adjusted disposable income was at its lowest level, as may be expected, after the financial and economic crisis and subsequently increased to reach a peak in 2019. This share increased almost every year during the period shown, the only fall being in 2020, impacted by the COVID-19 crisis.

Mixed income of households relates to the profits of unincorporated enterprises and represents remuneration for work that is carried out by self-employed people or members of their family; gross operating surplus accrues from renting out or owning a dwelling. As with net wages, the contribution from these components to EU gross household adjusted disposable income fell during the global financial and economic crisis. This share stabilised in a range of 20.4% to 20.8% between 2013 and 2017. The share then fell, down slightly to 20.2% in 2018 and 20.1% in 2019 and more rapidly to 19.4% in 2020. It stabilised around this level for 2 years – at 19.3% in 2021 and 19.4% in 2022. The share from gross operating surplus and mixed income then increased to 19.8% in 2023. As such, the share in 2023 was 1.0 percentage points (pp) below the 2013 level.

The second largest contribution to EU gross household adjusted disposable income was from social benefits (other than social transfers in kind). These include the following: payments from social security funds (such as pensions or child support); social assistance from government or non-profit institutions serving households; privately funded social benefits such as those made by insurance companies. The share of social benefits in EU gross household adjusted disposable income remained between 25.0% and 25.2% from 2013 to 2016. Thereafter, the contribution of social benefits to EU gross household adjusted disposable income fell back modestly and was 24.6% or 24.8% from 2017 to 2019. The impact of the COVID-19 crisis can again be seen, as this share rose to 26.6% in 2020, the highest share for this component throughout the period studied. Subsequently, it dropped back somewhat to 25.6% in 2021 and 24.4% in both 2022 and 2023. As such, the share of social benefits in gross household adjusted disposable income was 0.7 pp lower in 2023 than that observed 10 years earlier.

In the years following the global financial and economic crisis, the contribution of social transfers in kind to EU gross household adjusted disposable income increased from 17.4% in 2013 to 17.6% in 2014 and stayed at this level for 6 years. Impacted by the COVID-19 crisis, the share rose to 18.2% in 2020 and 18.7% in 2021. It then fell back to 18.3% in 2022 and 17.9% in 2023, the latter being 0.5 pp above the level recorded 10 years earlier.

Unlike the other components which add to gross household adjusted disposable income, the level of disposable income is reduced by taxes paid; for this reason, taxes are shown as negative values in Figures 3 and 4. The negative share of EU gross household adjusted disposable income that was accounted for by taxes fell during the global financial and economic crisis. Thereafter it increased steadily, expanding from -14.3% of income in 2013 to -14.8% by 2019. In 2020, the negative share accounted for by taxes fell (down to -14.3%), reflecting the fall in net wages during the 1st year of the COVID-19 crisis. In 2021 and 2022, the negative share remained quite stable (at -14.4% and -14.3%, respectively), alongside the partial recovery of the share of net wages. The negative share then fell again, to reach a low of -14.0% in 2023, some 0.3 pp less than in 2013.

Figure 3: Contribution to gross household adjusted disposable income, EU, 2013–23
(%)
Source: Eurostat (nasa_10_nf_tr)

A similar analysis is presented in Figure 4, which details the contributions of the various components to gross household adjusted disposable income in 2023 for individual countries. Similar data in euro, rather than as a percentage of gross household adjusted disposable income, are provided in Table 3 of the annex; see the link later in this article.

Net wages and gross operating surplus and mixed income together accounted for 56.6% of gross household disposable income in the EU in 2023, while the combined share of social benefits and social transfers in kind was 42.2%. Looking in more detail at the individual EU countries, there were considerable variations in terms of the contributions made by each component to gross household adjusted disposable income. In 2023, net wages and gross operating surplus and mixed income together accounted for 74.7% of disposable income in Denmark, 72.0% in Ireland, 70.3% in Romania, 69.2% in Malta and 68.2% in Latvia. By contrast, this share was just under half of the total in Germany (49.6%). Net wages were valued 8.1 times as high as the gross operating surplus and mixed income in Sweden and 6.0 times as high in Denmark. By contrast, in Poland and most notably in Greece, the value of the gross operating surplus and mixed income was greater than the value of net wages.

With the exceptions of Malta and Italy, the relative weight of social benefits in gross household adjusted disposable income in 2023 ranged from 16.1% to 26.7% among the EU countries. In Malta (11.6%) the share was lower, while in Italy it was somewhat higher (28.7%); it was higher still in Switzerland (30.8%).

Social transfers in kind accounted for 11.7% of gross household adjusted disposable income in Romania in 2023, the lowest share among the EU countries; a marginally lower share was reported in Serbia (11.6%; 2022 data) and a notably lower share in Switzerland (9.8%). Shares below the EU average were reported in all of the eastern, southern and Baltic countries; in Germany the share was also below the EU average. Above average shares were observed in the remaining western EU countries and all Nordic EU countries, reaching or exceeding 25.0% in Denmark, the Netherlands and Sweden.

Figure 4: Contribution of the components to gross household adjusted disposable income, 2023
(%)
Source: Eurostat (nasa_10_nf_tr)

Figure 5 shows the contribution from a number of different components to the overall change in gross household adjusted disposable income between 2013 and 2023; note these changes are based on information in current prices. On this basis, EU gross household adjusted disposable income rose overall by 45.1% during the most 10 years for which data are available. The largest contributions were made by net wages (contributing 18.7 pp of the overall change), social benefits (10.2 pp), social transfers in kind (8.5 pp) and gross operating surplus and mixed income (8.0 pp); taxes made a negative contribution of 6.0 pp.

In all except 2 EU countries (no recent data for Bulgaria), the main contributing factor to the development of their gross household adjusted disposable income was net wages; this was also the case in Switzerland and Norway (2013 to 2022 data).

In Greece and Cyprus, the largest contributing factor was the change in the gross operating surplus and mixed income.

Figure 5: Contribution of the components to the change in gross household adjusted disposable income, 2013–23
(%)
Source: Eurostat (nasa_10_nf_tr)

Household saving rate

During periods of economic uncertainty, household saving rates may be expected to increase, as households tend to save more when the risk of losing a job rises and they may defer expenditure on some or many non-essential goods and services (for example, the purchase of a new motor vehicle or a family holiday) until the economic situation improves. At the same time, saving rates could be also influenced by negative changes in disposable income, which would lead to lower savings rates. The household saving rate is defined as gross household saving divided by gross disposable income, with the latter being adjusted for changes in net equity of households in pension fund reserves.

Households in the EU saved 13.2% of their disposable income

Figure 6 reveals that the EU household saving rate was 13.2% in 2023, while the rate for the euro area was higher, at 14.1%.

In 2023, the highest gross saving rates among the EU countries (no data available for Bulgaria) were recorded in Czechia (19.4%), Germany (19.3%) and Hungary (19.0%); a higher rate was observed for Switzerland (22.0%).
There were 11 EU countries which recorded saving rates below 10.0% in 2023, among which Romania and Greece had negative rates, -6.8% and -1.9%, respectively. A negative saving rate indicates that households spent more than their gross household disposable income and are therefore either using accumulated savings from previous periods or are borrowing to finance their expenditure.

Figure 6: Gross household saving rate, 2023
(%, ratio of gross saving to gross disposable income)
Source: Eurostat (nasa_10_ki)

Developments for household saving rates during the period 2013 to 2023 are presented in Figure 7. The EU saving rate was relatively stable between 11.4% and 11.7% from 2013 to 2018. It then increased to 12.2% in 2019 before jumping to 18.2% in 2020 and 16.1% in 2021, as the COVID-19 crisis took hold. Savings increased during the COVID-19 crisis as some opportunities for consumption expenditure were restricted, for example concerning the purchase of hospitality, entertainment and travel services; this was particularly notable in 2020. In 2022 and 2023, the EU saving rate returned close to its previous level, at 12.7% and 13.2%, respectively.

Figure 7 also shows developments for the saving rates of the 4 largest EU economies. Throughout this period, the rates in Germany and France were above the EU average. By contrast, in Italy and Spain the rates were consistently below the EU average, with the rate in Spain lower than that in Italy except in 2023.

During the period studied, the household saving rate in Germany was the highest among these 4 large economies and remained within the range of 16.4% to 18.1% until the sharp increase in 2020 brought it to 23.2%; it dropped back slightly to 21.9% in 2021 and to 18.9% in 2022 before increasing to 19.3% in 2023.
The household saving rate in France was the 2nd highest among the 4 large economies shown in Figure 7. It stayed between 13.4% and 14.2% from 2013 to 2019. In 2020, it jumped to 20.0% before dropping back to 18.7% in 2021 and 16.5% in both 2022 and 2023.
In Spain, the development was somewhat more volatile than in the other large EU economies, but with a relatively similar overall development. The household saving rate ranged between 6.1% and 8.6% between 2013 and 2019. An increase of 9.0 pp was observed in 2020, more than doubling the rate to reach 17.6%, marginally below the rate in Italy and the closest the rate in Spain had been to the EU average during the period studied. The gross household saving rate in Spain fell back to 9.1% by 2022 before increasing to 12.1% in 2023, the only year it was above the rate in any of the other large EU economies.
The Italian household saving rate fell from 11.8% in 2014 to 10.4% by 2019. An increase of 7.4 pp in 2020 brought the Italian rate to 17.8%, before falling to 10.7% by 2023, in other words just above its 2019 level.

Time series between 2013 and 2023 are provided for gross household saving in euro and the gross household saving rate in Tables 5 and 6 of the annex; see the link later in this article.

Figure 7: Gross household saving rate, 2013–23
(%, ratio of gross saving to gross disposable income)
Source: Eurostat (nasa_10_ki)

The final analysis in this section divides the latest 10-year period into 2 parts. The 1st analyses changes in the household saving before the COVID-19 crisis. The 2nd compares the rate just before the crisis with the latest year – see Figure 8. The EU household saving rate increased by 0.6 pp between 2013 and 2019 and was 1.0 pp higher in 2023 than in 2019. A larger increase was observed between 2013 and 2019 for the euro area’s household saving rate (up 0.9 pp) accompanied by a slightly larger difference (up 1.1 pp) between 2019 and 2023.

Data are available for 26 EU countries (no information available for Bulgaria).

A total of 5 countries observed a larger increase in their household saving rate between 2019 and 2023 than the increase between 2013 and 2019 – Czechia, Spain, France, Lithuania and Austria.
In addition, 4 more observed an increase between 2019 and 2023 following on from a decrease between 2013 and 2019 – Belgium, Italy, Luxembourg (note that there is a break in series for the earlier period) and Portugal.
Germany recorded an increase of 1.5 pp in both periods.
In 6 countries, a smaller increase in the household saving rate was observed between 2019 and 2023 than the increase between 2013 and 2019 – Denmark, Greece, Cyprus, Hungary, Slovenia and Sweden.
In the remaining 10 countries, a lower household saving rate was recorded in 2023 than in 2019 (a fall in the rate), following on from an increase in the rate between 2013 and 2019.

Latvia and Malta recorded the largest overall increases in their household saving rates between 2013 and 2019, up 11.9 pp and 9.1 pp, respectively. The next largest increase was 5.4 pp in Romania. There were 4 EU countries where the household saving rate decreased between 2013 and 2019 (as mentioned above), with the largest decrease in Portugal (down 2.0 pp).

For the more recent period (between 2019 and 2023), the largest increases in the household saving rate were observed in Czechia and Lithuania, up 7.5 pp and 5.1 pp, respectively. Estonia and Romania recorded the largest decreases, down 7.0 pp and 5.6 pp, respectively.

Figure 8: Changes in the gross household saving rate, 2013–19 and 2019–23
(percentage points, based on the ratio of gross saving to gross disposable income)
Source: Eurostat (nasa_10_ki)

Household investment rate

Household investment mainly consists of the purchase and renovation of dwellings; expenditure on consumer durables (such as passenger cars) isn’t considered part of this component (and is included in final consumption) nor are financial investments. Note also that the investment statistics that are presented in this section also include investments made by unincorporated enterprises (principally sole proprietors). The household investment rate is defined as gross fixed capital formation (mainly dwellings) divided by gross disposable income, with the latter being adjusted for changes in net equity of households in pension fund reserves. Among other uses, this indicator provides a means of analysing the crash experienced in housing markets – linked to the subprime mortgage and credit crisis – during the global financial and economic crisis.

Household investment rates were 14.6% in Cyprus, 13.9% in Romania and 13.6% in Luxembourg in 2023

Across the EU, households invested 9.5% of their gross household disposable income in 2023; this figure was slightly lower than the rate recorded in the euro area (9.8%). Household investment rates in the EU countries ranged from 14.6% in Cyprus, 13.9% in Romania and 13.6% in Luxembourg to 5.4% in Sweden and 5.3% in Greece.

Figure 9: Gross household investment rate, 2023
(%, ratio of gross fixed capital formation to gross disposable income)
Source: Eurostat (nasa_10_ki)

Figure 10 shows the development of household investment rates between 2013 and 2023. In the EU, the impact of the aftermath of the global financial and economic crisis was still apparent, with the rate at 8.0% or 8.1% from 2013 to 2015. This rate increased in the next few years to reach 8.6% in 2018 and 2019 and dropped slightly in 2020 (to 8.5%). Notably higher rates were observed in the 3 most recent years: 9.5% in 2021, 9.9% in 2022 and 9.5% again in 2023.

In Italy, the household investment rate fell from 8.3% in 2013, just above the EU average, to 7.6% in 2014, below the EU average. From 2015 to 2019, the Italian rate was relatively stable (7.4% or 7.5%) and consistently below the EU average. In 2020, the rate fell to 7.0% before increasing strongly in 2021 to 9.9%, in 2022 to 11.4% and in 2023 to 12.2%, all above the EU average; the 2022 and 2023 values for Italy were the highest among the 4 largest EU economies.
The German household investment rate remained in the range of 9.0% to 9.3% between 2013 and 2017. The rate then increased each year to reach 10.4% in 2022; in 2023, the rate dropped back slightly to 10.0%. Germany had the highest rate among the 4 largest EU economies from 2013 to 2016 and again in 2020.
In France, the household investment rate fell from 9.2% in 2013 to 8.9% in 2015 before steadily increasing to 9.8% by 2019. In 2020, the rate fell to 9.3% before jumping to 10.4% and 10.3% in 2021 and 2022, respectively. In 2023, the rate fell back to 9.2%, in line with the rate recorded for most years since 2013. France had the highest rate among the 4 largest EU economies in 2017 and 2018 and again in 2021.
The development in Spain was similar to that in France. The Spanish household investment rate fell from 4.9% in 2013 to a low of 4.7% in both 2015 and 2016 before increasing to 5.6% by 2019. In 2020, the rate fell to 5.3% before jumping to 6.4% and 7.5% in 2021 and 2022, respectively. A different development was observed in 2023 as the rate fell back to 6.9%, thereby remaining well above the rates observed from 2013 to 2021. Despite the relatively large increases in 2021 and 2022, Spain had the lowest household investment rate among the 4 largest EU economies for the whole of the period from 2013 to 2023.

Time series between 2013 and 2023 of gross fixed capital formation in euro and of the gross household investment rate are provided in Tables 7 and 8 of the annex; see the link later in this article.

Figure 10: Gross household investment rate, 2013–23
(%, ratio of gross fixed capital formation to gross disposable income)
Source: Eurostat (nasa_10_ki)

A comparison of changes for the household investment rate between the 2 periods (2013 to 2018 and 2018 to 2023) covered in Figure 11 is available for 26 EU countries (no information available for Bulgaria).

In 7 EU countries – Denmark, Germany, Estonia, Ireland, Spain, Croatia and Luxembourg – investment rates rose at a faster pace between 2018 and 2023 than had been the case between 2013 and 2018.
In a further 4 EU countries – Greece, Italy, Poland and Slovakia – investment rates rose between 2018 and 2023 having fallen between 2013 and 2018.
In 6 countries – Belgium, France, Malta, Austria, Finland and Sweden – a lower household investment rate was recorded in 2023 than in 2018 (a fall in the rate), following on from an increase in the rate between 2013 and 2018.
In the remaining 9 countries, a smaller increase in the household investment rate was observed between 2018 and 2023 than the increase between 2013 and 2018.

Focusing just on the most recent change in the household investment rate (see Table 8 in the annex), the rate was 0.4 pp lower in the EU in 2023 than in 2022, reversing the increase observed the year before (up 0.4 pp). Between 2022 and 2023, the household investment rate increased in 9 of the 26 EU countries for which data are available (no data for Bulgaria). The largest increase in the gross household investment rate was recorded in Ireland (up 2.5 pp), while the largest decrease was in Finland (down 2.3 pp).

Figure 11: Changes in the gross household investment rate, 2013–18 and 2018–23
(percentage points, based on the ratio of gross fixed capital formation to gross disposable income)
Source: Eurostat (nasa_10_ki)

Source data for tables and graphs

Data sources

The compilation of sector accounts follows the European system of accounts (ESA 2010). It provides the basis for all of the data for the EU, EFTA and enlargement countries, as collected by the European Central Bank (ECB) and Eurostat. Together they publish integrated non-financial and financial accounts, including financial balance sheets, for the euro area; E urostat also publishes the non-financial accounts of the EU.

The non-financial accounts

Non-financial accounts provide a systematic description of the different stages of the economic process: production, generation and distribution, use and accumulation of income. Each of the accounts ends with a balancing item: value added, operating surplus, primary income, disposable income, saving, net lending/borrowing.

The household sector

Institutional sectors within national accounts bring together economic units with broadly similar characteristics and behaviour. The household sector – which for the purpose of this article also includes non-profit institutions serving households (NPISH) – is 1 of 4 sectors along with non-financial corporations, financial corporations and general government: together they make up the domestic economy.

The household sector consists of individuals or groups of individuals as consumers, as entrepreneurs (producing market goods, non-financial and financial services) and as producers of goods and non-financial services exclusively for their own final use. In general, sole proprietorships and most partnerships that don’t have an independent legal status are considered to be part of the household sector, rather than as corporations (financial or non-financial). However, there are sometimes practical difficulties in delineating ‘quasi-corporations’ (unincorporated businesses with the characteristics of companies) between corporations and the household sector; this may influence the scope and comparability of the data presented as well as the internal consistency of the full set of accounts.

As stated above, data for the household sector in this article are shown including information on the sector of non-profit institutions serving households. The latter is relatively small and includes, for example, charities, relief and aid organisations, religious groups, consumer associations, sports and recreational clubs, professional societies, trade unions and political parties. These institutions provide goods or services to households for free or at considerably reduced prices. Their main resources are derived from voluntary contributions in cash or in kind from households (in their capacity as consumers), payments made by general government, or property income.

Indicator definitions

Gross disposable income is the result of all current transactions before consumption. It excludes exceptional resources/uses such as capital transfers, holding gains/losses and the consequences of natural disasters. It reflects the net resources, earned during the period, which are available for consumption and/or saving. The information presented in this article concerns household disposable income adjusted to take account of social transfers in kind. The aggregate therefore consists of net wages, the gross operating surplus and mixed income, net property income (note that financial intermediation services indirectly measured (FISIM) is a component reallocated from property income to consumption within national accounts), social benefits, social transfers in kind, and other transfers, reduced by any taxes paid and pension contributions. In other words, it is the total amount of resources that a household has left available to spend or save once income taxes and pension contributions have been subtracted.

The gross household saving rate is the ratio of gross saving to gross disposable income, the latter adjusted for the change in net equity of households in pension fund reserves to offset their impact on cross-country comparisons.

The gross household investment rate is the ratio of gross investment (gross fixed capital formation) to gross disposable income, the latter adjusted for the change in net equity of households in pension fund reserves.

Context

In most developed world economies, an expectation of rising living standards has become common. However, since the turn of the millennium a continuous increase in living standards has become less clear-cut in some countries for a number of reasons. Housing costs (for rent or for purchase) have taken an increasing share of disposable income, with a particular impact on younger generations, many of whom may find it increasingly difficult to afford to leave the family home when they move into the labour market. Various crises – such as the global financial and economic crisis that started in 2007 and 2008, the related European sovereign debt crisis in 2008 and 2009 and subsequent recession, the COVID-19 crisis, and recent higher levels of inflation (the cost-of-living crisis) – have disturbed economic and social developments. Among other impacts, these have often led to a slowdown in economic activity, decreases in wages in real terms, higher levels of unemployment and more precarious employment conditions.

Gross household adjusted disposable income provides a measure of the financial resources that are available to households, after taxes and other deductions have been made. This information is used as a building block within national accounts to develop a range of derived indicators to look in more detail at issues such as discretionary income, gross household saving rates and gross household investment rates.

Explore further

Database

Annual sector accounts (ESA 2010) (nasa_10), see

Key indicators - annual data (nasa_10_ki)

Non-financial transactions - annual data (nasa_10_nf_tr)

Thematic section

Institutional sector accounts

Selected datasets

Annual sector accounts (ESA 2010) (t_nasa_10)

Adjusted gross disposable income of households per capita in PPS (tec00113)

Household saving rate (tec00131)

Methodology

External links

European Central Bank (ECB) – Sector accounts

Legislation

Key legal documents for institutional sector accounts