Consumer purchasing power 2009 stable
These are however only the mean values for the Republic. In social groups and individual regions of Germany, the developments are quite different:
The winners of previous years have been disproportionately affected by the crisis: the higher income brackets. In the first quarter of the year, the Federal Statistical Office recorded the strongest decline in income from business activities and assets (e.g. from securities) since 1970. Partially falling salaries of managerial employees and declines in variable salary components also affect higher income earners disproportionately.
On the other hand, increasing values can be seen in negotiated wages this year, mainly due to the high wage settlements in the first half of 2008. However, the expansion of short-time work and, above all, a clearer increase in unemployment expected for the second half of the year have had a negative impact. Pensioners' salaries increase from July by 2,41% in the West and by 3,38% in the East; with the strongest increase in 10 years, pensions will grow faster than wages this year. The monthly standard rate for the approximately 6,6 million Hartz IV recipients, the basic security for older people and social assistance are also increasing. Slight reductions in taxes and social security contributions further increase purchasing power; Real losses in purchasing power will ultimately probably be avoided due to the largely stable consumer prices (mainly thanks to declining costs for energy and food).
These trends also influence regional purchasing power development to a large extent. The comparatively low-income East German federal states, which benefit disproportionately from transfer payments, will record increases in per capita purchasing power in 2009, also thanks to higher negotiated wages in the course of further adjustment to the western level and an economic structure that is less susceptible to the current crisis, between a forecast 1,6% (Mecklenburg-Western Pomerania) and 0,7% (Thuringia). The only federal state with a decline in purchasing power (-0,3%) is probably Baden-Württemberg with its export-dependent industries particularly affected by the crisis.
An analysis at the level of the 419 urban and rural districts makes it clear that richer areas are more likely to have to accept declines in purchasing power, while lower-income urban and rural districts are generally less affected: for 8 of the 10 highest-income urban and rural districts, nominal increases in purchasing power are below the expected price increase of 0,1%, and thus real declines in purchasing power expected:
Table: The urban and rural districts with the highest purchasing power in 2009:
| city or district | Purchasing power per inhabitant | ||
| 2008 [€] | 2009 [€] | Growth | |
| district of Starnberg | 28 714 | 28 716 | + 0,0 % |
| Hochtaunuskreis | 28 343 | 28 324 | -0,1% |
| District of Munich | 26 518 | 26 378 | -0,5% |
| District-free city of Munich | 25 839 | 25 704 | -0,5% |
| Main-Taunus-Kreis | 25 764 | 25 699 | -0,3% |
| district of Ebersberg | 24 967 | 25 032 | + 0,3 % |
| district of Fürstenfeldbruck | 23 733 | 23 831 | + 0,4 % |
| district of Stormarn | 23 180 | 23 191 | + 0,0 % |
| Independent city of Erlangen | 23 429 | 23 190 | -1,0% |
| District of Dachau | 23 122 | 23 110 | -0,1% |
Conversely, the 10 urban and rural districts with the lowest incomes, in which the share of transfer income is well over 30% in some cases, can all expect real increases in purchasing power.
Table: The urban and rural districts with the lowest purchasing power in 2009:
| city or district | Purchasing power per inhabitant | ||
| 2008 [€] | 2009 [€] | Wax- | |
| Lower Silesian Upper Lusatia | 14 100 | 14 400 | + 2,1 % |
| Uckermark | 14 156 | 14 390 | + 1,7 % |
| District of Guestrow | 14 090 | 14 346 | + 1,8 % |
| district of Annaberg | 14 241 | 14 286 | + 0,3 % |
| Kyffhaeuser circle | 14 100 | 14 270 | + 1,2 % |
| Independent city of Görlitz | 13 990 | 14 151 | + 1,1 % |
| East Western Pomerania | 13 927 | 14 011 | + 0,6 % |
| District of Löbau-Zittau | 13 792 | 13 973 | + 1,3 % |
| District of Demmin | 13 423 | 13 841 | + 3,1 % |
| District of Uecker-Randow | 13 258 | 13 563 | + 2,3 % |
The current trend reversal in the development of purchasing power compared to the last few years is also reflected in the data from the Nuremberg market researchers: For the Erlangen-Höchstadt district, which had the strongest increase in purchasing power in the period 2004 to 2008, and some of whose large companies were severely affected by the crisis, Purchasing power expected to fall to EUR 2009 (-22%) in 640.
Conversely, for the city district of Aachen, which developed the weakest between 2004 and 2008, an increase to EUR 18 (+334%) is to be expected.
Despite a slight decline in each case, Munich remains the richest city with around EUR 25 per capita and Grünwald near Munich with around EUR 700 remains the richest of the approximately 53 municipalities in Germany.
A complete list of the purchasing power of all federal states and urban and rural districts as well as a map of the purchasing power distribution for printing can be found at
www.mb-research.de/content/view/20/35/
MB-Research is an institute specializing in purchasing power and other regional data and regularly determines the purchasing power for all municipalities and postcode areas in Germany, as well as all other European countries and important overseas markets. The information serves business and administrations to be able to make decisions with spatial reference more professionally.
Terms:
Nominal purchasing power: the disposable income of the population. It includes the net income from employment and assets, i.e. after deduction of taxes and social security contributions, as well as the transfer payments received such as pensions, unemployment benefits, child benefits, etc.
Real purchasing power development: The evolution of purchasing power not only from the point of view of its nominal change (euro amount), but also taking into account the depreciation as a result of the increase in consumer prices.
Source: Nuremberg [ MB Research ]
