Net income from abroad linked to lower consumption
Comparing Final consumption expenditure (current LCU) with Net primary income (Net income from abroad) (current LCU) across 180 countries, 2011–2025.
- Rank correlation
- -0.58
- Holding size constant
- -0.43
- Countries compared
- 180
- Period
- 2011–2025
What might link these
The negative correlation between net primary income and final consumption expenditure might suggest that countries with higher net income from abroad tend to have lower domestic consumption, possibly due to differences in economic structures or policies. A careful reader should be cautious about the potential impact of exchange rates, which could influence both indicators. A likely confounder could be the country's trade balance.
Why this is not proof of anything
This is a correlation across countries, not an experiment. It cannot show that either indicator causes the other, and both may simply follow a third thing. This correlation could mislead by implying a causal relationship between the two indicators, when in fact it may be driven by underlying economic factors or other variables not accounted for.
The second figure above repeats the measurement with national population and income held constant. It is the more conservative number: a relationship that largely disappears there was mostly telling you that larger, richer countries have more of most things.
How this was measured
Both indicators were ranked across every country reporting each, and the two rankings compared — ranks rather than raw values, because a handful of very large countries can otherwise manufacture a relationship on their own. The calculation is arithmetic over figures already published on this site; the commentary above is drafted from the two indicator names and the resulting coefficients.