Germany is located in the heart of the continent, consists of sixteen states and is known as the largest national economy in Europe and one of the largest in the world. The first thing that is associated with Germany is Hitler, the Berlin Wall and beer. However, Germany is much more than that. It is not only an economically and politically powerful country, but also a rich culture with respect for tradition, history and humanity.
How much is the cost of living in Germany? The Federal Republic of Germany is a country with a high standard of living. The living wage in Germany is 347 euros per person, while in Russia this figure is about 138 euros.
Structure and dynamics of the economy
One of the most politically and economically influential countries in the European Union is Germany. The country's economy is gradually developing. In 2017, GDP increased by 2.1%, the highest growth rate in the country since 2011. While export earnings have contributed significantly to the economicthe country's efficiency, domestic demand also played a key role. German public finance hit a record high in 2017.
In 2017, the German economy strengthened with a record budget surplus ($38 billion) and a reduction in public debt of almost 3% compared to 2016 (65.1% of GDP in 2017). The government is moving closer to its goal of reducing public debt to below 60% of GDP by 2024. Over the past year, the contribution of exports to GDP growth has declined in favor of domestic demand. This is mainly due to rising wages and the arrival of immigrants in the country.
Germany is facing many challenges such as an aging population and a shortage of engineers and researchers. Quitting nuclear power by 2022 and modernizing coal-fired power plants require a lot of funding. The government is seeking to attract more investment, especially in transport and energy infrastructure. Germany is likely to remain Europe's top economy in 2019, but political uncertainty could affect long-term investment. Unemployment hits record lows. Unemployment still exists in the former East Germany and in many rural areas.
The agricultural sector accounts for less than 1% of GDP and employs 1.3% of the German workforce. This part of the country's economy has benefited greatly from government subsidies. The main agricultural products are milk, pork, sugar beets and cereals. Germanconsumers prefer organic food. The country is undergoing a process of deindustrialization of the food industry.
The industrial sector accounts for about 30.5% of GDP - a sharp decline from 51% of GDP in 1970. The automotive industry is one of the largest industrial sectors in the country, but the German economy also retains other specialized sectors, including electrical and electronic equipment, machinery and chemicals. The decision to phase out civilian nuclear power by 2022 is likely to change the industrial landscape in the near future.
The service sector accounts for 68.7% of GDP and employs 70% of the German workforce. The German economic model relies heavily on a dense network of small and medium-sized enterprises (SMEs) that are well connected to the international environment. Over 3.6 million SMEs employ 68% of employees in Germany.
Is life expensive in Germany?
The cost of living in Germany is relatively inexpensive compared to its Western neighbors. Prices for food, accommodation, clothing, cultural events, etc. are broadly in line with the EU average. You will need about 850 euros per month to cover living expenses. The biggest expense goes to the monthly rent.
Germany's standard of living, public transport, he alth and education systems are excellent, and shopping bills are significantly lower than in other major cities, including Paris, London, Rome, Brussels andZurich. In terms of quality of life and well-being, Germany tops the OECD quality of life rankings.
Approximate prices for selected household goods and products:
| Food |
· business lunch set - € 11; combo meal at a fast food restaurant (Big Mac Meal or similar) - € 8; 1 liter full fat milk - €0.98; 500 grams chicken breast - €3,72; 500 grams of cheese at an average price - € 5, 10; 12 eggs, chicken - € 3.08; 1 kilo of tomatoes - € 2.47; 1 kilo of apples - € 2.44; 1 kilogram of potatoes - € 1.56; 0.5 liters of domestic beer in the supermarket - € 0.91; 1 bottle of good quality red table wine - € 7; bread - € 1, 22. |
| Housing |
monthly rent for 85 square meters: furnished rooms in the area - € 1,087-1,439; 1 month utilities (heating, electricity, gas and more) - € 180; · monthly rent for a furnished studio of 45 square meters - € 680-904; 1 month utilities (heating, electricity, gas and more) - € 129; Internet 8 Mbps for 1 month - € 24; 40 flat screen TV - € 374. |
| Clothes |
pair of jeans (Levis 501 or similar) - € 87; summer dress inHigh Street store (Zara, H&M or similar stores) - € 35; pair of sports shoes (Nike, Adidas or similar brands) - € 91. |
| Transportation |
Volkswagen Golf 1.4 TSI 150 CV, no extras, new - €20,517; 1 liter gas - € 1.41; Monthly payment for public transport - € 73. |
| Entertainment |
· lunch for two in a pub - € 32; 2 movie tickets - € 22; 2 theater tickets (best seats) - € 127; 1 minute prepaid mobile (no discounts or plans) - €0.13; 1 month gym membership in the business district - € 38. |
Prices may vary significantly in different regions of the country. In general, the south of Germany is the most expensive area to live in, including Munich and Stuttgart. For example, renting a one-room apartment in Stuttgart costs 846.43 euros on average, while a similar apartment in the northern German city of Bremen costs 560 euros on average. In percentage terms, this means that renting an apartment in Bremen is cheaper than in Stuttgart by more than 30%.
The capital, Berlin, is cheaper to live in compared to most European capitals or some of Germany's largest cities. A small one-bedroom apartment in Berlin costs an average of 795 euros per month.
Leipzig is one of the most affordable cities to live in Germany. Rent in Leipzig is cheaper than in Stuttgart by more than 40%. In Düsseldorf - 20% cheaper than inStuttgart, while prices in Stuttgart and in the largest city in the north, Hamburg, are quite similar.
The cost of living in Germany
Germany is one of the top ten countries with a high standard of living. The living wage in Germany per month is 331 euros for the head of the family and 80% of this amount for each family member. Unemployment benefit is 60% of the salary at the last place of work. If a citizen does not work for a long time, he has the right to social assistance (also 331 euros), as well as to pay for an apartment and medical insurance at the expense of the state. But all these payments immediately stop at the moment a person goes to work. It is not uncommon for immigrants to live off welfare benefits in Germany.
Everyone has the right to apply for basic state benefits under one of the following conditions: retirement age, disability or inability to work due to life circumstances. There is one more necessary condition for receiving the allowance: the monthly income should not exceed 789 euros. Payments in this case are approximately equal to the average living wage in Germany - from 324 to 404 euros. Pension benefits are: EUR 1,013 for men and EUR 591 for women.
Wages in the country
The minimum wage in Germany in 2018 is 8.84 euros per hour, or about 1498 euros per month. This figure is the same as in 2017 and the next salary review will be in January 2019.
Federal minimum wage in Germany appliesto almost all employees, including: to foreigners; people working part-time; who are on an internship or probationary line.
The labor market is gradually opening up to foreigners due to a lack of staff in almost every area of work. To work in many companies you need to speak German, but some companies, especially in the IT sector, require only knowledge of English and some work experience. Thus, working in Germany without knowing the language is quite possible, but if you are going to live in this country, then you should start learning German, because not all Germans speak English.
In the German economy, there is a strong demand for specialists in various professions, especially in IT, engineers, he althcare workers, scientists and other professionals.
Accessibility of learning
Germany is one of the most attractive countries for international students due to the lack of tuition fees and high quality education, especially in engineering and science. According to UNESCO, Germany attracted five percent of the world's international students in 2013 and became the fifth most popular destination country after the United States, the United Kingdom, Australia and France. Since then, the number of international students has been growing with each new academic year.
Cost of housing
Prices for apartments in Germany are very dependent on what area you are going to live in and what are your requirements for apartments. Most people in Germany live in apartments; from-for supply and demand housing is quite expensive. The most expensive city in Germany to rent is Munich, followed by Frankfurt and other major cities with a strong economy such as Hamburg, Stuttgart, Cologne and Düsseldorf. Berlin, despite being the capital, had very cheap rents in the 2000s but has now almost caught up with the German cities mentioned earlier.
Although apartments in Germany may seem expensive to some people, the quality of housing is generally decent. Be prepared to pay around €15 per square meter in cities like Frankfurt and Munich for a well-maintained (but not new) apartment. Monthly rent will be reduced to 10-12 euros per square meter in other major metropolitan areas, while in Berlin this figure will be close to 8-10 euros.
If the place of residence is a small town or countryside, these costs are significantly reduced to 6-8 euros per square meter, depending on the quality of housing. Leipzig is one of the cheapest cities in Germany, with an average rent of between 6 and 7 euros per square meter, and other general costs are also lower than the German average.
Utility costs are relatively high, driven in part by the government's decision to phase out nuclear power generation by 2022 following the 2011 Fukoshima disaster. Utilities are about 2.50 euros per square meter if you live in an apartment. This includes heating, hot water, gas, electricity, garbage collection, house snow removal, andalso cleaning and landscaping services. A telephone line and an internet connection cost about 30 euros per month. For the full package, including cable TV, an additional charge of about 15 euros is expected.
Medicine in Germany
In Germany, as in other European countries, there is compulsory he alth insurance. Members of one of the Gesetzliche Krankenkassen, a largely universal he althcare system (about 88% of the population), pay 7.3% of income plus an additional fee of 0.3 to 1.7% depending on the type of he alth insurance.
So you pay up to 9% of your income. The insurance also applies to children under the age of 18, and if they do not work - up to 23 years, and if they are in college - up to 25 years. If a wife or husband does not have their own insurance, it also applies to them if they do not have their own income. Insurance does not cover all medical procedures.
Transport costs
Public transport has an average cost compared to the rest of Europe, ranging from €60 to €90 per month. The cost of owning a car in Germany is slightly more expensive than in most European countries. The cost of gasoline or diesel is in line with most other European countries, but about double that of North America. The price of fuel is volatile and depends on the price of oil. Taxis are expensive, you will pay at least 10 euros even for a very short trip. Uber is not in Germany: it was banned after the courtruled that he violated transportation laws.
Grocery expenses
Food prices in Germany are generally cheap compared to most other European countries. Only the Netherlands and a few countries in Southern and Eastern Europe have lower average prices for a standard shopping cart.
On average, about 40 euros per month will be spent on the subsistence of one person.
Fun & Restaurant
Food in restaurants is more expensive than in southern Europe, with the exception of Italy. Drink prices are low, especially for local products such as wine produced in the southwest of the country and beer from the main brewing region of Franconia and Bavaria. Costs will average around €60 for a 2-course lunch for two including wine in a mid-range restaurant.
Drinks at the bar range from €3.50 to €4.00 for a liter of draft beer and from €5.00 to €6.00 for a 0.2-liter glass of fine wine. A coffee costs about €3.00 in a regular cafe. Movie tickets cost around €15,00. Gym memberships range from €25 to €75 per month.
One person who earns €2,000 a month after taxes and social security contributions can easily afford a comfortable life in Germany.
Numbeo is a great site for getting a more detailed idea of prices for individual items. It also has an interesting feature that allows you to compare one city with another. Expatistan is another site with similar functionality. If you want to calculate net andgross salary, a simple calculator in the form of a Der Spiegel link will help you do this.
