Lower Saxony Leads in Purchasing Power, Bremen Lags Behind

Lower Saxony Leads in Purchasing Power, Bremen Lags Behind

A new national ranking of price-adjusted incomes places Lower Saxony fourth overall. Bremen sits second-last, ahead of only Berlin.

The study lists real per capita income for Lower Saxony at €28,658. Bremen’s figure is €26,094. The report thus shows Lower Saxony Leads in Purchasing Power, Bremen Lags Behind.

Top and bottom of the scale

Bavaria tops the list with €30,396 in real purchasing power per person. High nominal incomes there combine with relatively high prices, yet the state remains first.

At the opposite end, Berlin records the lowest adjusted income. Its value is €24,656. Berlin pairs the second-highest prices with modest incomes.

Hamburg and other notable cases

Hamburg ranks poorly in real purchasing power despite high nominal wages. The city has the highest regional prices, which erode buying power.

Data and method

The analysis is based on work by the Institute of the German Economy in Cologne. Researchers collected detailed regional price data for cities and districts.

They linked those price figures to income statistics from the Federal Statistical Office. Both data sets come from 2023, the most recent validated year for incomes.

The authors warn that earlier IW evaluations are only partly comparable with these results.

Key figures at a glance

State Real income per capita (2023) Rank (of 16)
Bavaria €30,396 1
Lower Saxony €28,658 4
Bremen €26,094 15
Berlin €24,656 16

The results illustrate how prices reshape living standards across Germany. Filmogaz.com reports the findings and their implications for residents and policymakers.