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margin-bottom: 8px; display: inline-block; } </style> <div id="ad_ns_atf_01"></div> </div> </div> <div class="row"> <div class="column share-byline-timestamp"> <span class="byline-timestamp"> <span id="js-byline-icon"> </span> <span class="cnnbyline "> <span class="byline">by Ivana Kottasová </span>  <a href="https://web.archive.org/web/20170925165848/https://twitter.com/intent/user?screen_name=ivanakottasova" class="soc-twtname">@ivanakottasova</a> </span> <span class="cnnDateStamp"> September 25, 2017: 7:55 AM ET </span> </span> <div class="share-tools share-tools--main" id="js-sharebar-main"></div> </div> </div> </header> <div class="row two-columns-fixed-rr"> <section class="column"> <article class="module"> <div id="storycontent">  <div id="storytext"> <div id="js-ie-storytop" class="ie--storytop"> <script type="text/javascript"> vidConfig.push({ videoArray : [ {id : "/video/news/2017/09/07/german-economy-sixty-seconds-lon-orig.cnnmoney", collection: "", hed : "The German economy - in 60 seconds"} ], loc : 'top', autoplay : true, playerprofile : 'story', playerid : 'cvp_story_0', divid : 'vid0', hedtarget : '#cnnplayer0 .cnnHeadline' }); </script> <div class="cnnplayer" id="cnnplayer0"> <div class="cnnVidplayer"> <div class="summaryImg" id="vid0" href="/video/news/2017/09/07/german-economy-sixty-seconds-lon-orig.cnnmoney" onclick="javascript:VideoPlayerManager.playVideos('cvp_story_0'); return false;"> <img src="https://web.archive.org/web/20170925165848im_/http://i2.cdn.turner.com/money/dam/assets/170907154931-german-economy-sixty-seconds-1024x576.jpg" width="780" height="439" alt="The German economy - in 60 seconds" border="0"/> <span class="button video-play"><i class="icon icon--type-video"></i></span> </div> </div> <div class="cnnVidFooter"> <div class="js-vid-hed-cvp_story_0 cnnHeadline">The German economy - in 60 seconds</div> <div class="js-vid-countdown-cvp_story_0 countdown"></div> </div> </div> </div> <div class="share-tools share-tools--floater" id="js-sharebar-floater"></div> <h2 class="speakable">Chancellor Angela Merkel looks set for a fourth term after her party won the most votes in Germany's election.</h2> <p class="speakable"> But her victory was marred by a <a href="https://web.archive.org/web/20170925165848/http://edition.cnn.com/2017/09/24/europe/germany-far-right-party-election/index.html">surge in support for the Alternative for Germany</a>. The anti-immigrant AfD party took 21% of the vote in the east of the country, where industrial decline has left people feeling insecure. </p> <div id="ie_column"> <script> jQuery(document).ready(function(){ var BLACKLIST = { '/2017/07/28/news/economy/venezuela-cash-crisis/index.html' : true, '/2017/08/07/investing/trump-economy-report-card/index.html' : true } var SMARTASSET = SMARTASSET || {}; SMARTASSET.setDivIndex = function(i) { return i; } SMARTASSET.setSmartAssetScript = function() { SA = document.SA || []; SA.push({ embedUrl : "https://web.archive.org/web/20170925165848/https://smartasset.com", container : "#smartasset-article", version : 1.1, data : { key : "bdknf2rinbhwvdksm6zbmhf3twrv4oih" } /*{ key: "CNNe038d38a57032085441e7fe7010b0" }*/ }); console.log('finished in setSmartAssetScript push() call'); var smscript = document.createElement("script"); smscript.type = "text/javascript"; smscript.async = true; smscript.src = ("https:" == document.location.protocol ? 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Then we dont want to count any paragraphs that are wrapping the element as "valid" paragraphs. The result could be super squished text. 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Middle class incomes increased by 9% over the same period, while households at the bottom saw their incomes drop by 8%. </p> <p> Wages paid to workers increased by 5% between 2000 and 2016. Meanwhile, income from investments and business activities jumped by 30%. </p> <p> <a href="https://web.archive.org/web/20170925165848/http://edition.cnn.com/interactive/2017/09/world/germany-food-bank-cnnphotos/"><span class="inStoryHeading">Related: Germany's hidden hunger</span></a> </p> <p> Markus Grabka, an economist with the German Institute for Economic Research, said that weaker labor unions, tax reforms that benefited the rich and an increase in single person households have contributed to inequality. </p> <p> Outsourcing and automation have made the situation even worse. </p> <p> <strong><span class="inStoryHeading">10% own 60% of the wealth</span></strong> </p> <p> The income gap has translated into major differences in wealth. </p> <p> The richest 10% the population owns 60% of assets, while the bottom 40% have almost nothing, according to Germany's central bank. </p> <p> Inequality has risen steadily since 2005 despite unemployment dropping to record lows, according to Grabka. </p> <p> Grabka said the big question is whether all households "benefit from the strong recovery of the German economy." </p> <p> Huge efforts have been made to develop the poorer East since it was reunited with West Germany. </p> <p> But the risk of slipping into poverty is still significantly higher today in former Communist territory, where many industry towns have experienced a steady decline. </p> <p> "A large share of companies were closed in East Germany and the post-reunification construction boom [ran out in the 1990s]," said Oliver Rakau, chief Germany economist at Oxford Economics. </p> <p> <a href="https://web.archive.org/web/20170925165848/http://money.cnn.com/2017/09/06/news/economy/germany-election-merkel-economy-inequality/index.html"><span class="inStoryHeading">Related: How German economy stacks up</span></a> </p> <p> <strong><span class="inStoryHeading">16%: The risk of falling into poverty</span></strong> </p> <p> The share of Germans at risk of falling into poverty has jumped from 11% two decades ago to 16% in 2014. </p> <p> Grabka said that another key factor is an increasing number of jobs that don't pay well. </p> <p> Nearly 7 million Germans are working part time, precarious "mini jobs" that pay up to €450 ($540) a month. Many rely on welfare payments to get by. </p> <figure class="body_img body_img--780"> <img src="https://web.archive.org/web/20170925165848im_/http://i2.cdn.turner.com/money/dam/assets/170918111953-german-poverty-780x439.jpg" width="780" height="439" alt="german poverty" border="0"/> </figure> <p> </p> <p> Germany introduced a national minimum wage in 2015 in hopes of tackling the problem, an initiative supported by Merkel. </p> <p> But the chancellor, whose slogan is "prosperity and security for all," was largely silent on the issue of inequality during the campaign. </p> <p> Her main challenger, Martin Schulz, paid more attention to the issue, arguing that Germany's export success has been built on low wages. </p> <p> <i>-- A version of this story was first published on Sept. 20. </i> </p> <div id="storyFooter"></div> <div class="clearfix"></div> <div class="storytimestamp"> <span class="cnnStorySource"> CNNMoney (London) </span> <span class="cnnDateStamp">First published September 25, 2017: 7:51 AM ET</span> </div> </div>  <div class="foot"> <div id="postedin"></div> <div class="clearFloat"></div> </div> </div> </article> <div class="cnnoutbrain outbrain-recommended" id="js-outbrain-recommended"></div> <div class="cnnoutbrain outbrain-relateds" id="js-outbrain-relateds"></div> <script type="text/javascript"> window._mNHandle = window._mNHandle || {}; window._mNHandle.queue = window._mNHandle.queue || []; medianet_versionId = "121199"; (function() { var sct = document.createElement("script"), sctHl = document.getElementsByTagName("script")[0], isSSL = 'https:' == document.location.protocol; sct.type = "text/javascript"; sct.src = (isSSL ? 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