Purchasing power ranking: rural districts well ahead of major cities
The highest purchasing power in Saxony is not in the big cities. If per capita income is adjusted for the regional cost of living, the first places in the Free State go to rural districts, as calculations by the Institute of the German Economy (IW) show.
In the district of Leipzig, the disposable income - or real income - is 25,537 euros. It is followed by the districts of Zwickau (24,984 euros) and Meißen (24,831 euros). Leipzig (EUR 21,319) and Dresden (EUR 22,133) are at the bottom of the table. The highest disposable income in Germany is found in the district of Starnberg in Bavaria (EUR 32,831), with Gelsenkirchen in last place at EUR 18,886.
The calculations are based on a regional price index developed by the IW and the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) as of 2022 and income data from the Federal Statistical Office as of 2021. The ranking does not take into account differences in the expenditure structure, for example that city dwellers may have lower commuting costs than people from cheaper rural districts.
In these rural districts with high purchasing power, consumers may have more purchasing power due to lower prices compared to major cities. Conversely, consumers in cities like Leipzig and Dresden, despite having income above 20,000 euros, may find it challenging to maintain their spending due to higher prices.
Source: www.dpa.com
