A recent study by market researcher GfK has outlined the German federal states where consumers have the highest and lowest average purchasing power in 2025.

GfK's German purchasing power in 2025

In 2025, German residents’ average purchasing power has risen by 579 euros (2 percent) to 29.566 euros per person. GfK defines purchasing power as “the nominal disposable net income of the population, including state benefits such as unemployment benefit, child benefit (Kindergeld) or pensions”, the portion of a resident’s income which is “available for consumer spending, housing, leisure or saving”.

This nominal 2 percent growth is more moderate than the growth of previous years (3,3 percent in 2023 and 2,8 percent in 2024). In 2025, higher wages and an increase in certain social security benefits such as Kindergeld or housing benefit (Wohngeld) mean “Germans will once again have more money for spending and saving in 2025,” according to GfK commercial director Markus Frank. However, the moderate growth could mean “a loss of purchasing power in real terms”. 

Bavarians and Hamburgers have the highest purchasing power in 2025

As in previous years, residents in Bavaria were found to have the highest purchasing power of those living across Germany’s 16 federal states in 2025. Bavarian residents have an average purchasing power of 31.907 euros available for spending or saving, almost 8 percent over the national average.

Hamburgers have the second-highest purchasing power in 2025, moving up one position from last year. Residents in the city state have an average of 31.270 euros available for spending or saving.

GfK’s figures for 2025 saw Baden-Württemberg move down from second to third position. Residents in the southwestern federal state have an average of 31.233 euros available for spending or saving, 6 percent over the national average. Hesse (30.237 euros per resident) and Schleswig-Holstein (29.542 euros per resident) retained their spots from 2024 in fourth and fifth place.

The top eight states with the highest purchasing power are still all former West German states. However, in 2025, states of the former East saw the highest increases in purchasing power, continuing a trend of recent years. This means the purchasing power gap between the former West and East Germanies continues to close.

German federal states with the highest purchasing power in 2025

In all, these are the German federal states where residents have the highest average purchasing power in 2025:

1. Bavaria (31.907 euros per capita)
2. Hamburg (31.270)
3. Baden-Württemberg (31.233)
4. Hesse (30.237)
5. Schleswig-Holstein (29.542)
6. Rhineland-Palatinate (28.959)
7. North Rhine-Westphalia (28.917)
8. Lower Saxony (28.770)
9. Brandenburg (28.670)
10. Berlin (28.330)

For more information about the study, check out the official website.

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