Germany falls in the new World Bank ranking according to purchasing power parity

New World Bank data reveals that living costs in Germany are rising, dropping its rank in purchasing power parity (PPP) from fifth to sixth, behind Russia and Japan. The PPP-GDP for Germany stands at approximately $6.04 trillion as of 2024. Despite a 0.2 percent economic contraction, inflation and currency fluctuations caused the revised GDP figures to rise.

However, increasing living costs are significantly impacting citizens' purchasing power, driven by a 27 percent spike in Berlin rents since 2022.

This situation emphasizes the need for the government to address housing shortages and bureaucratic hurdles in construction projects to ease the mounting financial pressure on households.

According to the latest World Bank-aligned rankings by GDP (PPP), the countries above Germany (6th) are: China (1st), United States (2nd), India (3rd), Russia (4th), and Japan (5th).