GDP Quarterly National Accounts: 2023 Quarter 1 (January to March)

This publication includes updated estimates of onshore GDP growth in real terms up to the first quarter of 2023, along with additional breakdowns of GDP by categories of income and expenditure, and key household sector economic statistics, which are used for economic forecasting and modelling.

Gross Disposable Household Income (GDHI)

Gross Disposable Household Income (GDHI) is a measure of how much money the population has for spending or saving after earnings and transfers such as pensions, taxes and benefits are accounted for. GDHI includes income earned in other areas of the UK or from abroad (for example, offshore workers’ income or income from overseas investments) which are not part of onshore GDP.

In 2023 Quarter 1, GDHI is estimated to have increased by 6.6% in nominal terms (without adjusting for inflation) over the year compared to 2022 Quarter 1. The largest part of GDHI is income from employment, which is up by 8.1% over the year. In the latest two quarters there has also been a sharp increase in miscellaneous other current transfers to the household sector, a large part of which reflects payments from government under the Energy Bills Support Scheme.

Household Savings Ratio

The household saving ratio was 8.0% in the latest quarter, up from 7.5% at the same point last year, and similar to pre-pandemic levels. Over the last year there has been a 7.6% increase in consumer expenditure, driven by high price inflation, which has outpaced growth in households’ disposable income of 6.6%. This indicates a fall in the non-pension savings by households. However, the overall savings ratio has been boosted by very high levels of the adjustment for the change in pension entitlements, because of high gilt yields since the second half of 2022 and their impact on pension funds.

The household saving ratio represents funds which are available for adding to savings, including in pension funds, or paying off debt. It is not a measure of actual deposits made to savings accounts, or of savings accounts balances, but is a useful indicator of trends in overall household finances, and has been strongly impacted during the coronavirus pandemic.



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