How can Disposable Income be increasing but GDP is falling?

Question

How can Disposable Income be increasing but GDP is falling?

Answer 1

Averages are deceptive.

The rich get richer and the poor get poorer.

If a person with little or no disposable income ends up more poor it does not change the anoumt of disposable income significantly.

If that loss of income goes to somebody with disposable income already it is recorded as an increase of disposable income.

Over the past ten years general incomes have stagnated or even dropped but the top ten percent of earners have never seen their incomes increase as fast, ever.

So even though generally poverty is increasing so is disposable income because of the rapid wealth increases of a very select few..

Answer 2

Yes, temporary it possible - due to supply shocks and lags in incomes.

Another option - labor might work outside country and bring income home (human resources borrowing).