German middle class threatened by poor economy
Germany’s middle class is under threat from a declining world economy, with less than half the population expected to have above-average incomes by 2020, according to McKinsey analysts.
Weekly newspaper Welt am Sonntag reports that the study from the international business consulting company's German branch shows that continued weak economic growth rates would cause around 30 percent of the German middle class to fall down a peg.
“The level of economic growth that we have been able to achieve in the last 15 years has not been enough to reach down to the citizens,” Frank Mattern, Germany head of McKinsey told the paper. “For people in the middle class, such a slow growth means a loss.”
If the German economy manages to achieve more dynamic growth, up to three percent, the income of the average citizen would reach €36,000 a year by 2020, up by 40 percent on the average from 2006 of €25,000.
Global economic growth is expected to be around four percent, meaning a German rate of three percent would not be unrealistic, Mattern said.
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Weekly newspaper Welt am Sonntag reports that the study from the international business consulting company's German branch shows that continued weak economic growth rates would cause around 30 percent of the German middle class to fall down a peg.
“The level of economic growth that we have been able to achieve in the last 15 years has not been enough to reach down to the citizens,” Frank Mattern, Germany head of McKinsey told the paper. “For people in the middle class, such a slow growth means a loss.”
If the German economy manages to achieve more dynamic growth, up to three percent, the income of the average citizen would reach €36,000 a year by 2020, up by 40 percent on the average from 2006 of €25,000.
Global economic growth is expected to be around four percent, meaning a German rate of three percent would not be unrealistic, Mattern said.
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