Germany, 19 December 2006 – Germans are anticipated to have somewhat more consumer potential in 2007 than in the present year. The trends of the previous years are being sustained and purchasing power is switching to the areas surrounding the major towns and cities and the former East German states are steadily catching up. These are the findings of the GfK 2007 purchasing power survey.
According to the findings of the GfK survey, German consumers are likely to have disposable incomes totalling EUR 1.488 billion for 2007. State benefits like unemployment benefit, child benefit and pensions are included in this figure. Correspondingly, German citizens have an average purchasing power or disposable income of EUR 18,088 per annum to spend on the necessities of life and other consumer goods.
Starnberg in Bavaria is Germany’s wealthiest district. Its inhabitants have an average per capita purchasing power of EUR 26,120 and around 45% more money in their pockets than the national average. The districts of Hochtaunus and Main-Taunus near Frankfurt and Munich city and region are also among the “Top 5” when it comes to purchasing power. Without exception, the former East German districts remain below average.
Although the former East German federal states are still below the national average in terms of purchasing power, the positive trend of the previous years will be further sustained in 2007. The only districts where the inhabitants have weaker purchasing power compared to the previous year are Berlin and Potsdam. Nevertheless, the latter is the second strongest district in the new German federal states.
Berlin and Potsdam are representative of the general German trend that the purchasing power is migrating from inner cities to the surrounding suburbs and districts. Several rural districts in Mecklenburg Western Pomerania, in particular, show a positive development, with steady growth in purchasing power from a level well below the national average. This trend is partly due to structural development programmes and national transfer subsidies.
Similarly high growth rates as in Germany’s Northeast can otherwise only be found in South Bavaria, particularly in the area around Munich. However, in Baden-Wurttemberg and Hesse, especially in the Hochtaunus district near Frankfurt, purchasing power is also rising.
By comparison with the current year, not much is likely to change along the traditional “purchasing power peaks” of the Ruhr, Rhine-Main, Neckar areas, Munich and Hamburg, where the trend will remain positive. Slight losses in purchasing power are evident only in some rural border areas. Also in urban districts like Hamburg, for example, there is a migration from the town to suburbs. A slight to moderate drop in affluence is only perceivable in the data for the Hanover and Brunswick region.
The first purchasing power study was conducted by GfK in 1937. The survey examines the disposable income per capita and annum, including state benefits. Taxes and social contributions are excluded. Values are given in Euros and in the form of an index (German average = 100).
Along with fiscal statistics relating to wages, salaries and income, calculations are based on the relevant data on state benefits and the forecasts given by financial institutes. The GfK Purchasing Power 2007 survey is available for all German municipalities, postal code areas, urban and rural districts as well as for 2.4 million road sections.
– GfK GeoMarketing
GfK GeoMarketing a providers of GeoMarketing services in Europe deals in areas including: Consulting, Market data, Digital Maps, RegioGraph and DISTRICT. GfK GeoMarketing was formed in 2006 by the merger of GfK MACON, GfK Prisma and GfK Regionalforschung and is a part of the international GfK network.