A recent study by the Deutsche Bundesbank (BBk) has revealed that the average net worth of households in Germany is €232,800, with a median of €70,800. This includes assets such as property, bank accounts, vehicles, and private pension and life insurance claims, while mortgages and loans are deducted. However, a new study by researchers from the German Institute for Economic Research (DIW), Humboldt University, and the University of Bonn has found that “Germany is considerably richer than official statistics show.” The study suggests that the wealth of households in Germany has been underestimated, particularly in terms of property and company ownership.
The previous studies did not fully capture the wealth of better-off households, resulting in a wider gap between the rich and poor than previously thought. The economists attribute this to assets in the form of company ownership, as non-listed companies in Germany are often not required to disclose their balance sheets. Their value and therefore the wealth of their owners are difficult to estimate. Because official statistics are based on book value rather than the real value of companies, company ownership has been significantly underestimated at €2 trillion, while the realistic value is €4 trillion, according to the new study. The real estate holdings of Germans have also been undervalued, with official statistics showing €8 trillion in real estate holdings. However, due to the high appreciation of real estate in urban areas, the actual value of real estate holdings is around €10 trillion, according to the newly published study.
The authors also point out that the previous method of data collection, which relied mainly on surveys, may have led to incorrect information being provided by many people. Additionally, the wealthiest people in a country usually do not participate in such surveys. Therefore, the new study used sources such as the Rich List of Manager Magazin as a data source. The study highlights the need for more accurate and comprehensive data collection methods to better understand the true wealth of households in Germany.
