In 2020 Luxembourg ranked 3rd in European countries with the highest disposable income. This is based on the data by GfK. Spotzi offers the GfK disposable income of 41 European Countries as part of our dashboarding solutions.
Disposable income is also known as purchasing power. It is the net income of a person or household. Net income is the income after taxes, pension plans and other costs an employer deducts from a salary. Alimonies and other income are also part of the net income.
The average disposable income per capita (per person) of Europeans is €13,894 in 2020. The average disposable of the inhabitants of Luxembourg is €34,119. This is almost three times as high as the European Average. Liechtenstein ranks 1st with €64,240 and Switzerland 2nd with €41,998.
Does Covid affect the Disposable Income?
The data shows that Europeans have around €773 less disposable income in 2020 due to Covid-19. Liechtenstein and Switzerland didn't suffer that much from Covid-19 compared to other countries. Iceland and Norway have been hit quite hard by Covid-19. Their currency devaluated heavily against the euro.
It is important to know where disposable income is highest in order to be able to make the best possible use of marketing budgets and sales resources. The Disposable Income shows the economic strength of a given region, and helps you make business decisions related to sales management and marketing as well as location planning and evaluation. Therefore GfK updated the Disposable Income of all European Countries already in November 2020. This way you will have the latest insights that help you adjust your marketing efforts.