Business · Economy · 1 day ago

Economic growth is not easing the cost pressures many households face

Economic growth is not easing the cost pressures many households face

Economic growth measures the value of goods and services produced, but it does not show who benefits or what ordinary people can afford.

In the United States, median household income reached a record $87,460 in 2025 after adjusting for inflation, but it was only 2.5% higher than in 2019.

In the European Union, home prices rose 53% and rents rose 25% from 2010 to 2024.

Housing took an average of 19% of European households’ disposable income in 2024, and 37% for low-income households.

Real wages have begun to recover in many countries, but in many places they remain below the level they might have reached without the inflation that began in 2022.

Slower inflation means prices are rising more slowly, not that they have returned to where they were before.

That gap helps explain why economic growth may not feel like progress to people whose wages must cover housing, food and energy.

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