In Germany, real wages have risen for the sixth consecutive quarter, outpacing consumer prices.

The Federal Statistical Office reported a 2.9% increase in real wages in the third quarter compared to the previous year, with nominal wages rising by 4.9% against a 1.9% increase in consumer prices.

This trend has helped offset the purchasing power losses experienced during the high inflation period of 2022. However, experts warn that this wage recovery may soon slow as the relationship between wages and prices normalizes.

Despite the positive wage trend, concerns about economic downturns persist, fueled by factory closures and rising insolvencies.

The German economy narrowly avoided recession in the third quarter, with a slight GDP growth of 0.1%, driven by a 0.3% increase in private consumption.