GfK: Europe’s purchasing power has increased
According to GfK, the purchasing power of Europeans has increased on an average of 4.2%. But the purchasing power differs substantially in the several countries. In 2015, disposable income in eastern and western European countries lags behind Western and Northern Europe. But despite an unfavourable economic environment, these countries record a slight growth of their people’s purchasing power in 2015. According to the market research company, a total of approximately €9.13 trillion is available to European consumers in 2015 for spending and saving.
Liechtenstein, Switzerland and Norway are able to spend most
The average per-capita purchasing power in Europe is €13,636, GfK states. Liechtenstein (€64,900), Switzerland (€43,514) and Norway (€30,265) lead the European countries in terms of disposable income. With a yearly purchasing power of €21,449 per capita, Germany Deutschland ranks eighth after Great Britain (€22,289) and Austria (€22,067).
Ranked 13, France has an average per-capita purchasing power of €19,076. According to the GfK institute, Spain is the only country that approximates the European average with a disposable income of €13,203 per capita. Italy is ranked 18 with an average purchasing power of €16,193, which is 19% above the European average.
Poland and Czech Republic: Only half of the average disposable income
The inhabitants of the eastern European countries Poland and the Czech Republic have an average disposable income of €6,437 and €7,313 respectively. That means only half of the Europeans’ average purchasing power, GfK reports. Poland is ranked 28 and Czech Republic is ranked 26. However, the purchasing power in the countries’ capitals is substantially higher than the national average of each country. Warsaw’s inhabitants are able to spend €11,751 this year, approximately 83% above the national average. Likewise, Prag’s inhabitants have a disposable income of €9,598 per capita. So their purchasing power is 31% above the national average of the Czech Republic, the analysts point out.
About the study
The GfK Purchasing Power Europe study is calculated annually for 42 European countries. According to the market research institute, purchasing power is a measure of nominal per-capita disposable income after the deduction of taxes and charitable contributions and including any received state benefits. The study indicates per-person, per-year purchasing power levels in euros and as an index value. The study is conducted yearly.
Source: GfK, photograph: kreatik - Fotolia