Bundesbank Report Presented: Riches Become Richer

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<p class= The fortunes are in Germany has risen, the Bundesbank announced.


(Photo: picture alliance / dpa)


The Germans are becoming wealthier overall, notes the Bundesbank. But the growth is unevenly distributed. Above all, who lives in the West or owns a property accumulates wealth.


Household wealth rose on a broad basis between 2014 and 2017 according to a survey by the Bundesbank, although the growth was not distributed evenly. In particular, real estate owners have benefited from the attractive prices, writes the Bundesbank in its April monthly report.

Also, the fortunes of many tenants' households and "households in the poorer half of the distribution" would have increased, which is a consequence of increased incomes. The results are based on a survey of more than 5,000 households every three years.

The average net wealth in Germany in 2017 was 232,800 euros. This corresponds to an increase of 9 percent compared to 2014. The median was less than a third, concretely € 70,800. This is an increase of 17 percent compared to 2014.

The so-called median value is a mean value, from which there are computationally just as many poor as rich households. He points to an uneven distribution of net wealth in Germany according to the experts. Households of the wealthiest 10 percent, according to the Bundesbank, have net assets of 555,400 euros. This limit was 468,000 in 2014 and 442,000 in 2010.

East-West divide increased by residential property

Significant differences are also apparent between East and West. In the east of Germany, a household had a fortune of 23,400 on average, and in the West with 92,500 euros about four times as much. This is mainly due to a lower home ownership rate in East Germany, according to the Bundesbank. Overall, the share of real estate and stockholders in small and medium-sized households is very small.

According to the study, there was little change in the structure of net assets between 2010 and 2017. While in the upper part of the distribution property and property assets make up the major part of the assets, in the lower half there are almost exclusively financial assets.

Every 13th household with debts

indebted households (45 percent) and those with negative net assets (7.5 percent) would have changed only marginally. However, the burden on households due to lending rates has declined. For example, indebted households spent a significantly lower proportion of their income on lending rates in 2017 than in 2010.
The inclination to invest in securities continues to be hesitant in Germany, the Bundesbank concludes. Thus, the willingness is still high "to hold a substantial part of the financial assets in liquid and perceived as low-risk investment forms, although these currently only low returns."

Thus, 11 percent of respondents own shares and 3 percent bonds, but 16 percent fund shares. A checking account has almost all households with 99 per cent, 70 per cent a savings account including building savings and 31 per cent a Bauspar contract. Self-occupied homeowners own 44 percent, 34 percent in the east and 47 percent in the west.

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