MNI BRIEF: China Based German Firms Expect Slower Wage Growth
German companies operating in China expect salary growth to reach 3.8% in 2025, down from 2024's previous 4.5% forecast, the German Chamber of Commerce said on Monday.
“The slowdown in salary growth in 2025 indicates relatively low business confidence heading into the coming year,” said Moritz Berrenberg, chairperson at the chamber’s south China chapter.
Effective salary growth has hit 3.9% this year, the lowest increase since data began in 2019.
Beijing will likely tilt its support towards consumption in H2 and could issue consumer coupons or other measures that offer subsidies to lower-income households to ensure the economy meets its “around 5%” growth target, advisors and economists recently told MNI. (See MNI: Beijing Shifts Focus To Consumption To Boost H2 GDP)