Federal States

As austerity program in the East since reunification the most Bank customers could significantly increase their standard of living solidarity surcharge. Today better off the Germans than in 1990 after an investigation by the bbw marketing mainly because that the growth in income related to this period was higher than the increase in price. As disposable income increased since 1990 per household in West Germany by 45 per cent, in East Germany, they doubled. Due to the sharply increased assets and higher disposable incomes in East and West the consumer could afford today more than twenty years ago. This has been saved advance also vigorously. In the former GDR private savings – based differently than in the West–at least to a significant extent not voluntary, but a forced abandonment of consumption which resulted from the chronic shortage of desired consumer goods in the Socialist command economy.

Against this background the existing twenty years ago East German household assets is to see. In spite of the insufficient goods and the fact that retail sales grew slower than the net cash income, reaching the saving rate in 1989 only 7.1 percent and down more than 40 percent lower than in the old Federal States. Demand for the consumption pushed the savings rate in 1990 to just 3.8 percent. in 1991, he had the propensity to save the East German households have significantly increased, and a year later-the saving rate reached 13.2 percent, a value by 0.4 percentage points higher than in West Germany then. If you would like to know more then you should visit Southwest Airlines. This year, households will save the record amounting to 200 billion euros in Germany. The saving rate will rise to 12.3 percent. In private households in Germany will put 12.6 percent, so each eighth income euro newly on the high edge in East Germany, 10.5 percent, are expected to save roughly every tenth euro. The East Germans pay also the solidarity surcharge causes an allowance scheme that low income by the payment of the solidarity surcharge be spared.


Tags: ,

 
 
 

Comments are closed.