Tue. Dec 3rd, 2024

Update: German Public Debt Reached €2.445 Trillion, Climbs by €77.4 billion in 2023

a note that says pay debt next to a pen and glasses

Wiesbaden, Germany — As the year 2023 came to a close, Germany’s public sector – comprising the federal government, states, municipalities, and social security, including all off-budget entities-  recorded a debt of €2.445 trillion. This data, released by the Federal Statistical Office (Destatis) on Wednesday, indicates a 3.3% or €77.4 billion rise in public indebtedness compared to the end of 2022.

However, there was a marginal decrease of 0.3% or €8.5 billion in the fourth quarter compared to the third quarter of 2023.

This debt encompasses obligations to the non-public sector, which includes banks and other domestic and foreign entities such as private companies both within Germany and abroad. The increase in public debt over the year reflects the government’s financial commitments and policy responses, potentially influenced by various economic factors like infrastructure projects, social programs, and other public expenditures.

The slight quarter-on-quarter reduction in debt towards the end of 2023 suggests a slight easing or adjustment in public spending or an increase in revenue during this period. The dynamics of this debt movement are crucial for understanding the financial health and fiscal policies of the government, especially in the context of global economic trends and domestic fiscal challenges.

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BySilvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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