The Swiss surpass the Germans and Austrians when it comes to purchasing power in 2018, shows the latest GfK study. According to the press release, the available net income within each of these countries also varies markedly. None of the federal states or cantons encompassing the countries’ capitals top the national rankings as the purchasing power hotspots are found elsewhere.
According to GfK’s new study, inhabitants of the Swiss canton of Bern, where the country’s government resides, have a 2018 per-capita purchasing power of €37,270. Inhabitants of the Austrian capital federal state of Vienna have €22,817 per person. Inhabitants of Germany’s capital federal state of Berlin have a 2018 per-capita purchasing power of €21,033. Therefore, all three capital regions fall below their respective national averages. While the gap is only around two percent for Vienna, Bern and Berlin are both approximately eight percent below their countries’ national averages.
Purchasing power measures the available net income of the population, including government subsidies such as unemployment assistance, child benefit and pension contributions. GfK’s study illuminates the regional differences both within and between the evaluated countries. GfK forecasts a 2018 per-capita purchasing power of €40,456 for Switzerland. According to the study, the total purchasing power for Switzerland in 2018 is €340.6 bil. (excluding Liechtenstein). In 2018, Austrians have on average €23,282 per person, with a total purchasing power of approximately €204.2 bil. Germany’s approximately 82.5 million inhabitants command a total purchasing power of €1,893.8 bil. This corresponds to a per-capita purchasing power of €22,992.
With more than €24,000 per person, Lower Austria and Vorarlberg are Austria’s only federal states whose per-capita purchasing power exceeds the national average of €23,282 by more than three percent. Salzburg takes the third place, followed closely by Upper Austria, whose per-capita purchasing power index is just above the national average. The remaining federal states are somewhat below Austria’s average, with the federal state of Tyrol in last place, as was the case in the previous year.
As in the previous year, the highest per-capita purchasing power is the cantons of Zug, Schwyz and Nidwalden. Due to the relatively small number of inhabitants, the purchasing power in these three cantons equates to only around five percent of Switzerland’s total purchasing power. The most populous canton of Zurich – which is home to around 18 percent of Switzerland’s population – has more than €68 bil. purchasing power, which is almost 20 percent of the country’s total purchasing power. Zurich also has a high average per-capita purchasing power, coming in at fourth place.
Inhabitants of the second-most populous canton of Bern have almost €38 bil. at their disposal, which comprises around 11 percent of Switzerland’s total purchasing power. Even so, the canton ranks only fifteenth out of 26 in the nation’s per-capita purchasing power rankings.
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GfK forecasts a total purchasing power of €1,893.8 bil. for Germany in 2018. This is a nominal per-capita increase of 2.8 percent or €633 over the revised forecasted values from last year. In 2018, Germans will consequently have an average per-capita purchasing power of €22,992 available for consumer purchases, accommodation, recreation and saving.
Purchasing power is a measure of the population’s disposable net income, including government subsidies such as pension payments, unemployment assistance and child benefit. The 2018 purchasing power increase is based on growing salaries in many industries as well as a stable employment market. A rise in pensions is also anticipated for 2018.
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