German real wages rose 0.5 percent year-on-year in the second quarter of 2018, easing from a 1.1 percent advance in the previous period. Nominal wages increased 2.5 percent from April to June (vs 2.7 percent in Q1) and inflation went up to 2 percent (vs 1.6 percent in Q1). Wage Growth in Germany averaged 0.81 percent from 2006 until 2018, reaching an all time high of 2.70 percent in the second quarter of 2015 and a record low of -1.40 percent in the fourth quarter of 2007.
Wage Growth in Germany is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Wage Growth in Germany to stand at 1.50 in 12 months time. In the long-term, the Germany Real Wage Growth YoY is projected to trend around 1.80 percent in 2020, according to our econometric models.