Germany saw record decline in real earnings in 2022 amid high inflation | Forexlive

Real earnings declined by 4.1% last year in Germany, marking the sharpest drop since the start of the time series in 2008, at least according to Destatis. The record jump in inflation in Europe’s largest economy more than offset the 3.4% increase in nominal earnings, resulting in a third consecutive yearly drop in real earnings for the German population.

While lawmakers and policymakers are hopeful to avoid a recession, this still reaffirms that the situation on the ground is still really tough for many households.