Germans' purchasing power climbs two percent

Bruchsal, Germany, December 14, 2015 – Germans are poised to enjoy a nominal purchasing power increase of €430 per person in the coming year. This is one of the findings of GfK's new study, GfK Purchasing Power Germany 2016. The GfK data shows significant differences in how this purchasing power is regionally distributed.

GfK forecasts a total purchasing power of €1,776.5 bil. for Germany in 2016. Based on the current population of around 81 million inhabitants, this equates to €21,879 per person. Compared to the previous year, Germans will thus benefit from a nominal average increase of two percent or €430 per person in 2016 for consumption, rent and other living costs. A forecast by the European Commission puts the 2016 inflation rate at one percent, which means Germans can expect a real-value purchasing power increase of one percent.

Purchasing power is a measure of the population's disposable net income, including government subsidies such as pension payments, unemployment assistance and child benefit.

Regional distribution of purchasing power

The list of Germany's top ten urban and rural districts remains the same as last year. As in previous years, the rural district of Starnberg is Germany's district with the highest per-capita purchasing power. With €31,850 per person, inhabitants of this district have 46 percent more than the national average.

Top ten urban and rural districts in 2016

2016 ranking urban district (UD) / rural district (RD) inhabitants GfK Purchasing Power 2016 per inhabitant in € purchasing power index*
1 Starnberg RD 131,873  31,850   145.6  
2 Hochtaunuskreis RD 230,798  31,238   142.8  
3 Munich RD 332,800  30,530   139.5  
4 Main-Taunus-Kreis RD 229,976  29,665   135.6  
5 Munich UD 1,429,584  29,578   135.2  
6 Ebersberg RD 134,873  29,105   133.0  
7 Fürstenfeldbruck RD 210,278  27,450   125.5  
8 Erlangen RD 106,423  27,187   124.3  
9 Dachau RD 146,279  26,861   122.8  
10 Stormarn RD 236,705  26,321   120.3  

source: GfK Purchasing Power Germany 2016                       *index per inhabitant; 100 = national average

With €17,194 per person, the rural district of Görlitz continues to be in last place among Germany's 402 districts. The rural district of Oldenburg comes in at the national average.

The federal states in eastern Germany are slowly but surely catching up in terms of their purchasing power, but they still lag significantly behind Germany's other federal states. Even though a comparison of index values (deviation from average) reveals both positive and negative trends, the absolute volume of per-capita purchasing power is growing in all federal states, with the most growth in Saxony (+2.8 percent) and the least in Hamburg (+1.5 percent). The per-capita purchasing power increases in 2016 range from €360 to €500, depending on the federal state in question.

Federal states: Winners and losers in 2016

index change compared to previous year (absolute) federal state GfK Purchasing Power 2016 per inhabitant in € purchasing power index* 2016 ranking
+0.7 Saxony 18,615 85.1 13
+0.6 Thuringia 18,587 85.0 14
+0.6 Saxony-Anhalt 18,335 83.8 15
+0.5 Brandenburg 19,691 90.0 12
+0.3 Mecklenburg-Western Pomerania 18,216 83.3 16
+0.2 Saarland 20,463 93.5 9
+0.1 Schleswig-Holstein 22,058 100.8 5
-0.1 Bavaria 23,843 109.0 2
-0.1 Hesse 23,293 106.5 4
-0.1 North Rhine-Westphalia 21,876 100.0 6
-0.1 LowerSaxony 21,409 97.9 8
-0.2 Baden-Württemberg 23,368 106.8 3
-0.2 Rhineland-Palatinate 21,500 98.3 7
-0.2 Berlin 19,990 91.4 11
-0.4 Bremen 20,224 92.4 10
-0.5 Hamburg 24,024 109.8 1

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