Record increase in real wages in Germany
Real wages in Germany increased by 3.8 percent in the first quarter of the year compared to the same period of the previous year, showing the highest increase since 2008.
According to the 2024 first quarter provisional data on real wages announced by the German Federal Statistical Office (Destatis), real wages in Germany increased by 3.8 percent in the first quarter compared to the same period of the previous year. This was recorded as the highest increase since 2008, when records on wages began to be kept.
According to the announced data, it was seen that real wages in the country continued to rise for the fourth consecutive quarter.
Nominal wages also increased by 6.4 percent in the first quarter, the second highest increase on record.
Destatis noted that the strong increase in nominal wages and the relatively weaker inflation trend are the main reasons for real wage growth in the first quarter of 2024.
The fact that inflation in the country was 2.5 percent in the first quarter caused consumer prices to decrease the purchasing power of workers less.
Experts pointed out that the improvement in purchasing power in Germany by curbing the rising inflation after Covid-19 and the Ukrainian-Russian War may increase consumer demand in the coming months, and therefore private consumption may become an important pillar of economic recovery.