Germany's Public Debt Soars

2022 Sees Significant Increase

Details on the Growth and Implications

Germany's public debt has reached unprecedented levels, hitting a staggering 1.62 trillion euros by the end of 2022. This marks a substantial increase of 719 billion euros (46%) since 2021, primarily driven by the COVID-19 pandemic and its associated government spending.

The average debt per inhabitant in Germany now stands at 28,164 euros, a significant burden on taxpayers. The federal government's debt alone amounted to 18,627 euros per capita in 2022.

The increase in debt is also reflected in the overall public deficit, which reached 33 billion euros (774 billion euros) in 2022 compared to 2021. This deficit is mainly attributed to substantial government spending on economic stimulus measures during the pandemic, such as the Kurzarbeitergeld (short-time work allowance).

The rapid increase in public debt raises concerns about its long-term sustainability and the impact it could have on the German economy. As a result, policymakers are facing pressure to implement measures to reduce the debt burden and ensure fiscal stability in the years to come.