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Dream - The data company ECA International's report noted that Asia Pacific is the only region experiencing real wage growth in 2023. The report stated that the average increase in real wages in Asia Pacific has increased by 1.3 percent.
The report shows that several regions will experience a decrease in average real wages, which is the growth of nominal wages minus the inflation rate. Europe is predicted to experience a decrease of 1.5 percent, North and South America 0.5 percent, and Africa and the Middle East by 0.1 percent.
"Eight out of the top 10 countries with the highest real wage increases globally come from the Asia-Pacific region this year," the report stated, quoted by CNBC on Tuesday, November 1, 2022.
According to ECA International's Regional Director, Lee Quane, the significant increase in inflation in 2022 caused 78 percent of the surveyed countries to experience a real wage decrease, and no European country experienced a real wage increase.
"Although the global situation is expected to improve next year with higher nominal wage increases and lower average inflation, a 0.5 percent decrease in real terms is still expected," he explained.
The annual report is based on information collected from more than 360 multinational companies in 68 countries. In the Asia-Pacific region, India will experience the largest real wage increase at 4.6 percent, followed by Vietnam at 4 percent, and China with a growth of 3.8 percent.
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Most surveyed locations in APAC are expected to experience the same or higher levels of real wage growth in 2023, as in 2022.
"India is predicted to have the largest real wage increase globally. This is due to India's economic growth rate and the need for wage growth to surpass inflation. Although the inflation rate has increased in India in 2022 compared to 2021, wages will increase at a faster nominal rate."
Workers in China are also among the small global group that will receive the highest real wage growth this year and next. In 2022, wages in China increased nominally by 5.9 percent and will grow by 6 percent in 2023.
"Only about a third (37 percent) of surveyed countries are expected to experience a real wage increase, although this is better than the 22 percent that experienced an increase this year," the report added. (merdeka.com)
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