Sustained economic growth can’t be achieved without a major boost to the purchasing power of the bottom 50% of the population

Real wages have been falling since 2019 – a rare phenomenon – but, for a long time, social transfers and income from assets made up for it. In 2025 and 2026, that is no longer the case. As a result, average purchasing power fell over two consecutive years, something that only happened twice since 1960.

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