Household gross disposable income is estimated to have increased by 6.34% in the third quarter of 2021, compared with last year‘s corresponding quarter. Disposable income per capita amounted to close to 1.1 million ISK in the quarter and is estimated to have increased by 4.4% compared with the third quarter of 2020. Due to increased inflation rate, the purchasing power of household disposable income per capita in the third quarter of 2021 increased by 0.1% compared with last year’s corresponding quarter, but the consumer price index increased by 4.3% during the same period.
| Quarterly household disposable income 2020-2021 | |||||||
| Million ISK | 2020-Q1 | 2020-Q2 | 2020-Q3 | 2020-Q4 | 2021-Q1 | 2021-Q2 | 2021-Q3 |
| 1. Income | 660,819 | 707,988 | 697,569 | 707,993 | 712,014 | 763,139 | 751,583 |
| D.1 Compensation of employees, receivable | 384,357 | 396,328 | 407,059 | 408,638 | 401,752 | 435,877 | 444,636 |
| D.4 Property income | 43,204 | 41,523 | 40,830 | 42,426 | 43,264 | 44,097 | 44,987 |
| - D.41 there of interest | 14,071 | 12,264 | 11,793 | 13,709 | 14,176 | 12,952 | 13,148 |
| D.62 Social benefits other than social transfers in kind | 104,098 | 133,549 | 118,507 | 125,930 | 123,280 | 131,728 | 121,217 |
| Other income1 | 129,160 | 136,587 | 131,174 | 131,000 | 143,718 | 151,436 | 140,744 |
| 2. Expenditure | 305,288 | 306,927 | 310,995 | 315,735 | 324,397 | 339,925 | 340,514 |
| D.4 Property expenditure | 20,728 | 18,445 | 19,564 | 21,835 | 23,932 | 21,397 | 23,307 |
| - D.41 there of interest | 20,087 | 17,823 | 18,899 | 21,119 | 23,366 | 20,865 | 22,739 |
| D.5 Current taxes on income, wealth, etc. | 113,625 | 118,823 | 122,833 | 123,294 | 123,493 | 135,837 | 139,473 |
| D.61 Net social contributions | 110,414 | 110,953 | 112,821 | 116,180 | 110,270 | 115,278 | 116,892 |
| Other expenditure2 | 60,521 | 58,706 | 55,776 | 54,428 | 66,701 | 67,412 | 60,842 |
| B.6G Disposable Income (1. - 2.) | 355,531 | 401,061 | 386,575 | 392,258 | 387,617 | 423,214 | 411,070 |
| Disposable income per capita (in thousand ISK) | 971 | 1,094 | 1,050 | 1,064 | 1,048 | 1,139 | 1,097 |
| Relative change in purchasing power of disposable income per capita (%) | 0.7% | 5.4% | 0.3% | 3.1% | 3.5% | -0.3% | 0.1% |
1 Other income include output (P.1) and other current transfers (D.7) receivable.
2 Other expenditure include intermediate consumption (P.2), compensation of employees (D.1) payable, taxes on production and imports (D.2) and other current transfers (D.7) payable.
The total income of the household sector increased by 7.8% in the third quarter of 2021 compared with the third quarter of the previous year. The largest increase was in wages and salaries which are estimated to have increased by 9.2% from last year’s corresponding quarter. It is estimated that property income increased by 10% during the same period, but income from interests increased by 11.5%. Social benefits increased by 2.2% after having increased excessively during the corresponding quarter of last year due to the measures taken by the Icelandic government to mitigate the economic impact of the Covid-19 pandemic.
Total expenditure of the household sector increased by roughly 9.5% in the third quarter of 2021 compared with the third quarter of the previous year. Taxes on income are estimated to have increased by 13.5% and that net social contributions increased by 3.6% from last year’s corresponding quarter. Property expenditure is estimated to have increased by 19.1% in the third quarter of 2021 compared with last year’s corresponding quarter where interest payments increased by 20.3% during the same period which can largely be attributed to the increase in the level of household real estate investments during the period.
These are preliminary figures and thus Statistics Iceland will publish revised figures when exhaustive information is available, e.g. tax returns from corporations and individuals.