What Is Happening in Europe's Largest Economy... Record-High Poverty Rate in 'This Country'

30% of Those Living in Poverty Are Foreign Nationals
Social Welfare Budget Cuts Add to the Burden
Germany Ranks 9th Among 27 EU Countries

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A recent survey has found that one in six people living in Germany is at risk of poverty.

The Equal Welfare Association, a coalition of social welfare organizations, stated in a report on June 2 (local time) that 13.3 million people, or 16.1% of the total population, were classified as living in poverty last year.

The poverty rate rose by 0.6 percentage points compared to 2024, marking the highest level since records began. The report explained that although the poverty rate had declined from 2020 to 2023, the trend has now reversed.

The European Union (EU) classifies households as being at risk of poverty if their disposable income is less than 60% of the median income. Last year, the poverty threshold in Germany was a monthly post-tax income of 1,446 euros (2,559,000 won) for a single-person household, and 3,036 euros (5,372,000 won) per month for a household of four, consisting of two adults and two children under the age of 14.

Last year, 6.9% of the population experienced such severe economic hardship that they could not afford living expenses, mainly due to rising electricity and heating costs.

By state, poverty rates were higher than the national average in Bremen (27.5%), Saxony-Anhalt (21.3%), Hamburg (18.9%), and Berlin (18.7%). In contrast, Bavaria (12.6%) and Baden-Württemberg (13.2%), both with strong industrial bases, recorded relatively low poverty rates.

The risk of falling into poverty was particularly high among elderly people living alone (30.3%), single-parent households (28.9%), and those with low educational attainment (29.1%). Approximately 30% of those classified as living in poverty were foreign nationals.

The Equal Welfare Association emphasized that cuts to social welfare budgets could further worsen poverty. The group called for an increase in the minimum wage and expanded housing support.

The German government has launched large-scale fiscal stimulus since last year in an effort to revive the sluggish economy. However, as the budget has been focused on defense and infrastructure investment, spending on social welfare—including support for unemployment benefits and housing for pensioners—has actually been reduced.

According to Eurostat, the EU’s statistical agency, 20.9% of the EU population was at risk of poverty or social exclusion due to factors such as economic hardship or unemployment last year. Germany (21.2%) ranked ninth highest among the 27 member states, following Bulgaria (29.0%), Greece (27.5%), and Romania (27.4%).

This content was produced with the assistance of AI translation services.