Countries and institutions track many indicators to measure economic growth, with gross domestic product (GDP) growth among the most closely watched.
However, GDP growth does not reflect what people are actually taking home in real income, even when adjusted for inflation.
Real household income per capita measures the change in earnings that households actually have available to spend or save, providing a more accurate reading of living standards.
So, which European countries recorded the highest annual real household income per capita growth in 2025?
Among 16 European countries, 14 saw increases in real household income per capita last year compared to 2024, while only two recorded declines.
