Purchasing power on the rise: rural regions are outperforming cities!

Purchasing power on the rise: rural regions are outperforming cities!

Purchasing power in Austria is showing increasingly positive developments, especially in rural regions. Despite the challenges presented in recent years - including the pandemic and high inflation - disposable income has increased in many places. According to an analysis by RegioData Research, average purchasing power per capita has grown by around 40 percent since 2014, with further increases forecast for 2024 and 2025. An inflation rate of less than three percent is expected for 2023, while purchasing power continues to increase reported.

However, in large cities, especially Vienna, a different picture emerges. Growth here is falling short of expectations. In many districts of Vienna, the growth over the last ten years has even been less than 30 percent. Although the inner city has the highest purchasing power at 44,686 euros per capita, the increase since 2014 has been rather modest at only 14 percent. Cities like Linz, Graz and Klagenfurt are no better off in terms of purchasing power and also show below-average growth.

Purchasing power in rural areas on the rise

While cities are stagnating, rural areas are showing impressive growth: Lienz leads the ranking with an increase of 54 percent, followed by Murau with 53 percent and Tamsweg with 51 percent. This trend is not only encouraging, but also a consequence of regional investments, increasing employment opportunities and increasing immigration to these regions. so the analysis continues.

The development at federal state level is also interesting: Salzburg has overtaken Lower Austria for the first time and now takes the top position in terms of purchasing power. The differences in purchasing power within Vienna are also striking; The district of Rudolfsheim-Fünfhaus is at the lower end of the scale with an average of just 22,600 euros per capita.

Regional differences and challenges

The regional differences in purchasing power remain and show a growing gap between high- and low-income districts in the cities. This topic is not only limited to Austria; experts also observe similarities in Germany. For example, a GfK study predicts that the purchasing power of Germans will increase to an average of 29,566 euros per capita in 2025. But here too, rising consumer prices pose a challenge that could ensure that this nominal increase does not bring the hoped-for real benefit for consumers reported.

A further analysis by the German Economic Institute highlights that purchasing power and prosperity not only depend on income, but are also strongly influenced by the regional cost of living . These factors should not be ignored in the discussion about increasing purchasing power.

Overall, the development of purchasing power in Austria and beyond remains exciting to watch. The difference between urban and rural areas is likely to widen in the coming years, which may bring new challenges and opportunities.