Gelsenkirchen is in last place in the Germany-wide purchasing power ranking - financial expert explains the reasons

Gelsenkirchen is in last place in the Germany-wide purchasing power ranking - financial expert explains the reasons

According to a report by www.waz.de,
The German Economic Institute (IW) published a report that analyzes purchasing power in German districts, districts and cities. It is found that Gelsenkirchen occupies last place nationwide. The disposable income per capita in Gelsenkirchen is 18,886 euros, which is 22.5 percent below the national average. Although the cost of living in Gelsenkirchen is 5.1 percent cheaper than the national average, people in the city have around 23 percent less money at their disposal. This is because housing costs have a large impact on the overall cost of living.
Gladbeck and Bottrop, Gelsenkirchen's neighboring cities, have better purchasing power in comparison because they have lower housing costs and living costs.
The analysis shows that rural and less urban regions have an advantage, while large cities lose purchasing power.

With regard to the financial sector, the low purchasing power in Gelsenkirchen could mean that there is less investment there and the market for certain products or services is limited. This could have an impact on economic growth and employment in the region. Additionally, banks and financial institutions could adjust their lending standards to reflect the increased risk of borrowers in areas with low purchasing power. This could lead to more restrictive credit conditions for individuals and companies in Gelsenkirchen.