Finance ministry says household income rose 4.5 percent in second quarter

The finance ministry said Thursday that total household income rose 4.5 percent in the second quarter from a year earlier, marking the twelfth consecutive period of growth. The increase was driven by rising wages, stronger service sector production and retail sales, and the distribution of high-oil-price relief subsidies.

Real income, adjusted for inflation, grew 1.5 percent during the same period. Earned income rose 0.8 percent, business income 3.8 percent and transfer income 20.4 percent.

Gains were recorded across all five income quintiles, with lower-income households seeing faster growth rates than wealthier ones. The first quintile posted a 7.5 percent increase in total income, fueled by a 3.4 percent rise in earned income and a 9.8 percent jump in transfer payments. In contrast, the fifth quintile saw total income grow 3.8 percent, supported by an 11.0 percent rise in business income and a 31.9 percent surge in transfers despite a 1.7 percent decline in earned income.

The income disparity ratio between the top and bottom quintiles fell to 4.97 times, down 0.48 percentage points from the same quarter last year. The ministry cautioned that quarterly fluctuations require careful interpretation compared to annual data.

Household consumption expenditure rose 3.4 percent overall as spending on home goods, food services, and culture grew, while real consumption edged up 0.4 percent. Disposable income climbed 5.2 percent, expanding the household surplus by 9.6 percent.

Officials said they will focus on implementing a second-half economic growth strategy to boost potential growth rates, alongside efforts to stabilize prices, reduce living costs and improve employment conditions.