Germans' purchasing power predicted to climb 2 pct in 2016: GfK study

Germans are poised to have a nominal purchasing power increase of 2.0 percent per person next year, GfK's new study, GfK purchasing power Germany 2016, showed on Monday.

According to the report, a total purchasing power of 1.8 trillion euros (1.95 trillion U.S. dollars) is forecast for Germany in 2016. Based on the current population of around 81 million inhabitants, this equates to 21,879 euros per person.

Compared to the previous year, Germans will benefit from a nominal average increase of two percent or 430 euros per person in the coming year for consumption, rent, and other living costs, the Nuremberg-based market research group reported.

"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," the report added.

In addition, the list of Germany's top ten urban and rural districts remains the same as last year. The rural district of Starnberg in Bavaria is Germany's district with the highest per-capital purchasing power as in previous years, and the federal states in eastern Germany still lag significantly behind Germany's other federal states.

GfK defines purchasing power as the sum of the net income of the population per district. Calculations are carried out on the basis of reported income and earnings, statistics on state taxes and deductions, as well as economic forecasts provided by leading economic institutes. Endit