The purchasing power of German consumers is expected to rise by 1.7% next year to €22,239, according to data from GfK.
The study also found that Germany’s 25 most populous districts account for a quarter of the country’s purchasing power between them.
GfK forecasts a total purchasing power of €1,827.5 billion for Germany in the coming year, which is a 2.9% nominal increase over the previous year. Rising wages are having a beneficial effect on purchasing power, while Germany’s population also increased between 2015 and 2016, by 1.2%.
Purchasing power is calculated by measuring the population's disposable net income, including government subsidies, such as pension payments, unemployment assistance and child benefit.
"Among the country's city-states, per-capita purchasing power in Berlin increases by 2.0%," GfK said. "More modest growth characterises Hamburg and Bremen, at 1.3% and 1.1%, respectively."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
