This map shows the percentage change in household disposable income between 2018 and 2022 in Nordic municipalities (big map) and regions (small map).
Household disposable income per capita is a common indicator of the affluence of households and, therefore, of the material quality of life. It reflects the income generated by production, measured as GDP that remains in the regions and is financially available to households, excluding those parts of GDP retained by corporations and government. In sum, household disposable income is what households have available for spending and saving after taxes and transfers. It is ‘equivalised’ – adjusted for household size and composition – to enable comparison across all households. Purchasing Power Standards (PPS) is used to compare the countries’ economies and the cost of living for households.
As shown in the map, between 2018 and 2022, household disposable income increased for all Danish, Icelandic, and Norwegian municipalities and decreased for Finnish and Swedish municipalities. On average, the city municipalities have higher incomes and increased most in Finland and Sweden in 2018–2022. In Sweden, a tendency towards larger falls in income was observed in several southern municipalities.
In summary, absolute household income increased in all Nordic countries but not when measured in purchasing power. Based on this metric, on average, Norwegian households are the most well-off and Iceland the worst off, while Danish households benefited from a stronger currency in 2022. Single-parent households have had lower increases in household income than other families in Norway and parts of Sweden. Municipalities show a similar trend in Norway and Denmark, although Norwegian coastal municipalities fared slightly better in 2022. Disposable income is falling in all Swedish and Finnish municipalities.
