German Firms in China Project Slowest Wage Growth in Over a Decade

German companies in China are projecting their smallest wage increases in more than a decade for 2027, even as their economic outlook brightens and layoff plans drop sharply, a new industry survey shows.

Employees can expect an average pay bump of 2.95% next year, down from 3.19% this year, according to the German Chamber of Commerce in China, which surveyed 571 firms. 

Despite the cooling wage expectations, pessimism is fading. Only 17% of companies expect to cut jobs this year, plunging from the 28% that shed staff last year. Meanwhile, 37% anticipate an economic improvement, up from just 15% last year.