Monday, December 24, 2007

Germans purchasing power is growing faster than inflation - GfK survey

German consumers are forecast to have disposable incomes totalling EUR 1,542 billion in 2008. This figure includes state benefits like unemployment benefit, child benefit and pensions. This corresponds to an average per capita purchasing power or disposable income of EUR 18,734 per annum, which every German can spend on the necessities of life and consumer goods. The figure is almost 700 euros higher than for 2007 and represents growth of around 3.8%. It means that the growth of the average per capita purchasing power exceeds the maximum rate of 2% inflation forecast by the European Central Bank for 2008.



This means, Germans will have more money to spend on rentals, savings, services and retail consumer goods than this year.

German purchasing power has been continually rising for many years. Although there are no double digit increases, affluence is continuing to grow at a high level. In terms of business, the challenge is to make products and services more attractive in order to release the consumer potential of Germans, who are noted for being avid savers.

According to the survey   Bavarias
inhabitants with an average disposable income of EUR 20,340 per capita are the most affluent members of German society. Seven of the ten districts of Germany with the highest purchasing power are located in Bavaria and in a national purchasing power ranking, 39 Bavarian districts the top 100.
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