Austria's purchasing power in 2025: Rural regions are experiencing a boom!

Austria's purchasing power in 2025: Rural regions are experiencing a boom!

The latest developments on purchasing power in Austria show a clear upward trend. How elektro.at reports, RegioData Research has published a comprehensive analysis showing that nominal purchasing power has increased on average by almost 5% compared to the previous year. This represents a welcome turning point, especially after years of high inflation, which has placed a severe strain on Austrians' financial flexibility.

The increase in average purchasing power from around 20,400 euros in 2014 to around 28,000 euros in 2024 is basically a remarkable progress of around 40%. Even if the high inflation years of 2022 and 2023 were unable to fully cushion nominal income growth, there is reason for hope: an inflation rate of less than 3% is forecast for 2025, which could further increase real purchasing power.

Regional differences

The analysis also shows significant differences in purchasing power. While rural districts such as Lienz (+54%), Murau (+53%) and Tamsweg (+51%) are recording impressive growth, purchasing power is stagnating in many urban centers. What is particularly noteworthy is that the city of Vienna, which with an average purchasing power of 27,326 euros is now around 1,000 euros below the Austrian average, has recorded a decline. Things are bad in the lowest-income districts: Rudolfsheim-Fünfhaus closes the list with just 22,600 euros.

But there are also differences within Vienna. Vienna's city center has the highest per capita purchasing power at 44,686 euros, while other districts have to be content with increases of less than 30%. With an increase of just 14%, the inner city has the lowest growth of all districts. On the other hand, rural areas have benefited from significant increases in recent years.

A look beyond the borders

Interestingly, a study by... retail-news.de that the average purchasing power of Germans in 2025 will be 29,566 euros per capita, which corresponds to a nominal increase of 2% compared to the previous year. These figures make it clear that while inflationary pressure is also being felt there, purchasing power in rural regions overall tends to grow, while large cities stagnate. Bavaria, for example, leads the ranking in Germany with a purchasing power of 31,907 euros.

Current challenges, such as rising costs of living and uncertainties in the labor market, are impacting consumer behavior. The German Economic Institute (IW) also shows in a study that purchasing power is determined not only by income, but also by the cost of living, which reflects the reality in Austria tagesschau.de.

In summary, it can be said that Austria is on the right track financially despite the prevailing challenges. While rural counties are catching up, distribution inequality remains a challenge that needs to be addressed. The rising level of prosperity is a cause for joy, but also a wake-up call not to lose sight of the urban centers.