Median Household Income Overview
The indicator refers to the median income of a household in a country. Median household income divides households into two equal segments, such that the first half earns less than the median income while the second half earns more. The median income is defined in PPP (Purchasing Power Parity, in Current International Dollars) terms so as to avoid exchange rate fluctuations due to inflationary tendencies across countries. The median income level is generally accepted as a better indication of well-being or actual income distribution as it is not skewed by disproportionate data.
According to GlobalData, the top ten countries with the highest median household income in the world are Singapore, Iceland, Norway, Sweden, Ireland, Luxembourg, Belgium, the United States, Cyprus, and Australia. The average median household income (PPP) was $40,094 in 2021.
Finland’s Median Household Income Highlights in 2021
Finland’s median household income hit (PPP) $39,471 in 2021, an increase of 1.1% over the previous year. Between 2010 to 2021, Finland's median household income (PPP) increased by 2.1%.
According to Eurostat, the gross debt to income ratio of households expanded from 98.5% in 2009 to 118.8% in 2020. Lower borrowing costs and longer repayment terms have made mortgages cheaper in Finland. Increasing indebtedness may cause repayment problems if interest rates increase in the future. Most mortgages are based on variable interest rates, thus exposing households to risks in the case of a sharp increase in interest rates. However, household debt as a percentage of gross disposable income has been increasing in Finland, making households vulnerable to interest rate risks.
Key elements that are influencing the Global Economy
Increased COVID-19 impact:
As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality rate from the coronavirus.
Rising Inflation and Interest Rates:
As a result of rising inflation rates in both developing and advanced economies, central banks have been forced to tighten monetary policy and raise interest rates to keep prices from rising. However, a steady increase in interest rates could cause financial distress in some economies.
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer