According to the report, there is a significant purchasing power disparity between Luxembourg and the rest of the Greater Region.
While prices are substantially higher in Luxembourg, the same is true for incomes. As a result, Eurostat estimates that purchasing power in Luxembourg is approximately 37 to 60% higher than in its neighbouring countries.
In order to remove the price differences from the equation, Eurostat conducted its survey by calculating the median disposable income in purchasing power parity. On a European level, this value is 18,019 per capita. In France, it is 20,054, compared to 22,695 in Belgium and 23,401 in Germany. Luxembourg tops the list with 32,132.
The Grand Duchy is also relatively well off in terms of price increases, with Eurostat estimating an inflation rate of 8.2% for 2022. This compares with 5.9% in France, 8.7% in Germany, and 10.3% in Belgium.
Outside of Luxembourg, cross-border workers benefit the most from the country’s economic prosperity, despite the fact that their salaries are often lower than those of residents.
