German debt reaches all-time high
Soaring state borrowing is linked to the energy crisis, government statistics service has said
German debt reaches all-time high
© Getty Images/golero
Germany’s public debt reached a new record of €2.37 trillion ($2.6 trillion) at the end of 2022, data released by the Federal Statistical Office (Destatis) on Wednesday showed.

The debt owed by the overall public budget to the non-public sector rose 2% year-on-year, or by €46.1 billion ($50 billion), compared to 2021. Destatis attributed the increase to emergency measures during the Covid-19 pandemic and the energy crisis.

Compared to the end of the third quarter of 2022, debt soared by 1.8% or €41.9 billion ($45.5 billion), raising concerns over its impact on the German economy and financial stability. Per-capita debt amounted to €28,155 ($30,600) representing a growing burden on the population.

Spiraling inflation, a raging energy crisis and expectations of a further slowdown in the EU’s largest economy have eroded consumer activity, posing a threat to economic prosperity.

German debt skyrocketsREAD MORE: German debt skyrockets
Economists say that the surging debt owed to the non-public sector illustrates the challenging economic conditions faced by Germany due to the pandemic and the energy crunch. The non-public sector includes banks and other domestic and foreign economic sectors, such as private businesses in Germany and abroad, according to Destatis.

The government’s efforts to mitigate the impact of these crises have led to a significant increase in public borrowing. German Finance Minister Christian Lindner earlier said the government needed to limit its spending, meaning the state will not be able to quickly solve current economic problems such as falling levels of wealth.

Germany, which relies mainly on natural gas to power its industry, has been struggling to cope with skyrocketing energy costs. The nation has vowed to replace imports from its once biggest supplier – Russia – by as early as mid-2024. However, attempts to diversify gas supplies have contributed to the energy crunch.

For more stories on economy & finance visit RT's business section

You can share this story on social media:
RT
European Union – EU
Germany
social

Top stories
Ex-Russian president comments on EU ‘peacekeepers’
Ex-Russian president comments on EU ‘peacekeepers’
Belarus ready to host Russian strategic nuclear weapons – president
Russia’s revised foreign policy doctrine: Key points
Biden rejects call to expel Russians
America, the reality TV show, reaches new depths with Trump’s indictment OP-ED
WSJ demands retaliation after journalist’s arrest in Russia
Italy bans ChatGPT
EU underestimating Russian economic capacity – Orban
RT Features
Russian moves: Here are five athletes who electrified their sports with unique tricks
Russian moves: Here are five athletes who electrified their sports with unique tricks FEATURE
Weaponizing e-girls: How the US military uses YouTube and TikTok to improve its image
Weaponizing e-girls: How the US military uses YouTube and TikTok to improve its image FEATURE
Death of the most famous man in the world: How space pioneer Yuri Gagarin lost his life
Death of the most famous man in the world: How space pioneer Yuri Gagarin lost his life FEATURE
From Around the World
Subscribe to RT newsletter to get news highlights of the day right in your mailbox
E-mail
We offer you the possibility to receive RT's news highlights every Monday, Wednesday and Friday by email.
Subscribe
Podcasts
All podcasts
العربية
ESP
РУС
DE
FR
RS
RT News App
Live
Applications
Where to watch
Schedule
Sponsored content
Terms of Use
Privacy policy
About RT
Contact info
Feedback & Complaints
Vacancies
RT.com
© Autonomous Nonprofit Organization “TV-Novosti”, 2005–2023. All rights reserved.

This website uses cookies. Read RT Privacy policy to find out more.