European purchasing power on the rise

The average per capita purchasing power in Europe this year is EUR 18,768, as GfK, a German market research institute, has discovered. This represents nominal growth of 3.9 per cent compared to the revised figure for the previous year. There are clear differences between the European countries: people in Liechtenstein, Switzerland and Luxembourg have a much higher net income than in the rest of Europe, while purchasing power is lowest in Kosovo, Belarus and Ukraine. The big winner is the United Kingdom. This is shown in a new study by the consumer researchers of GfK.

For the year 2024, Europeans had a total of around EUR 12.9 tn euros at their disposal. However, how much money is actually available for spending and saving varies from country to country and also depends on how consumer prices develop in 2024, according to the researchers.

Ireland slips down six places

As in previous years, Liechtenstein is once again in first place this year. The people of Liechtenstein have a per capita purchasing power of EUR 70,180, which is more than 3.7 times the European average. Switzerland and Luxembourg follow in second and third place. While the per capita purchasing power of the Swiss, at EUR 52,566, is 2.8 times that of the average European, Luxembourgers have a net disposable income of EUR 41,785 per capita. This is more than 2.2 times higher than the European average.

The United Kingdom has moved up three places this year and ranks seventh with a per capita purchasing power of EUR 28,086. Ireland has suffered major losses: after steadily improving in the rankings in the past, the island state slipped down six places in 2024. At EUR 26,880 per capita, the Irish are in twelfth place and 43 per cent above the European average.

Austria once again improved by one place and is now in sixth place with a per capita purchasing power of EUR 29,266. Germany is in ninth place with a purchasing power of EUR 27,848. The Netherlands is in tenth place with an average net disposable income of EUR 27,558 per person. Spain is slightly below the European average with EUR 18,013 per capita. As in previous years, Ukraine is at the bottom of the table. People there only have EUR 2,878 per capita at their disposal, which is just over 15 per cent of the European average.