8 European Nations Outpace U.S. in Per-Capita Income

Citizens of eight West European countries, led by Switzerland, earned more than Americans in 1988, according to figures made available by the World Bank on Friday.

Switzerland’s per-capita income last year was $20,130, while in the United States per capita income was $14,080.

The others ahead of the United States: Luxembourg, $19,960; Sweden, $17,160; Iceland, $16,480; West Germany, $15,880; Norway, $15,250; Denmark, $14,530 and France, $14,130.

The comparisons do not show what the incomes will buy. There was no comparative list of living costs in the different countries.

Japan, seen by many U.S. politicians as the chief economic competitor of the United States, was still some distance behind at $12,480. But Japanese incomes are among the fastest growing in the world.

Part of Deliberate Policy

From 1984 to 1988, per-capita income in Japan grew by 22.2%, according to the World Bank’s figures. Only Hong Kong’s grew more, by 28%, though Spain was close with a growth of 21.6%.

U.S. per-capita income grew by 9.6% in the period.

The comparisons are given in terms of dollars on 1980 buying power. In the United States, consumer prices increased by about 43% from 1980 to 1988.

Figures for 1989, when compiled, may be different because the dollar has been rising this year in terms of its price in other currencies after dropping steadily since 1985.

The drop of the value of the dollar was in part deliberate policy of Secretary of State James A. Baker III, then secretary of the Treasury, and allies in major financial countries.

But the allies are complaining that the dollar commands a higher price than they agreed to and that cooperation has broken down.

The World Bank and its companion institution, the International Monetary Fund, are holding their annual meeting in Washington this week.

PER-CAPITA INCOME Per-capita income for designated countries. 1984 was chosen at random. Figures are in U.S. dollars of 1980 buying power. No 1988 figure was available for New Zealand.

Country 1984 1988 Country 1984 1988 Australia 9,980 10,920 Japan 10,210 12,480 Austria 10,580 12,040 Luxembourg 18,890 19,960 Belgium 12,140 13,800 Netherlands 12,120 13,100 Canada 11,160 12,650 New Zealand 6,960 NA Denmark 13,450 14,530 Norway 15,570 15,250 Finland 11,640 13,690 Spain 5,550 6,750 France 12,630 14,130 Sweden 15,370 17,160 W. Germany 13,730 15,880 Switzerland 17,680 20,130 Iceland 13,800 16,480 Britain 10,200 11,690 Ireland 5,540 5,830 U.S.A. 12,850 14,080 Italy 8,320 9,630 Hong Kong 6,780 8,680 Israel 5,880 6,490

Source: World Bank