GNI linked to household spending

Comparing GNI (current LCU) with Households and NPISHs Final consumption expenditure (constant LCU), per unit of GDP across 169 countries, 2011–2025.

Rank correlation
+0.69
Holding size constant
+0.79
Countries compared
169
Period
2011–2025

What might link these

The relationship between GNI and household consumption expenditure may be driven by a country's economic development stage, as higher GNI could enable more household spending. A careful reader should consider the potential impact of income inequality, a likely confounder. The correlation might also be influenced by other factors such as government policies or cultural norms.

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 direct causal link between GNI and household spending, when in fact other underlying factors may be driving the relationship.

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.

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