General government debt in Germany increased by €62billion in 2023 to €2.62trillion. The basis for this calculation is government debt as defined in the Maastricht Treaty, which is harmonised across the European Union. The increase was similar to that of the previous year, but significantly weaker than in the years before. Central government debt grew by €75billion, while state government debt continued to fall.
The debt ratio, meaning the ratio of debt to nominal gross domestic product (GDP), fell for the second year in a row, to 63.7%. The significant decline of 2.4 percentage points is due to strong growth in nominal GDP. GDP rose by 6.3%, mainly owing to high inflation. Taken by itself, this reduced the debt ratio by 4 percentage points.
The increase in debt was lower than the general government (Maastricht) deficit of €87billion. Part of the deficit was financed not by new debt, but by drawing on available bank deposits. The government had built up these reserves during the coronavirus pandemic by setting aside a portion of its large-scale borrowing. Debt had thus already risen in previous years without a deficit having to be financed. Furthermore, lower borrowing was possible due to the repayment of funds that had previously been lent by the government to support energy supply companies and in the form of assistance loans during the coronavirus pandemic. However, loan repayments do not reduce the national accounts deficit.
The liabilities of government-owned “bad banks”, which are included in the debt, and loans from aid measures for euro area countries declined. Bad banks further reduced their debt by just under €17 billion. Government support measures in favour of domestic financial institutions had contributed €128billion to the debt level as at the end of 2023, accounting for 3.1 percentage points of the debt ratio. Assistance measures for euro area countries fell slightly to just over €83billion (2.0 percentage points of the debt ratio).
Year | Debt level (€ billion) | GDP (%) | Change in
debt level (€ billion) |
2023 | 2,624 | 63.7 | + 62 |
2022 | 2,562 | 66.1 | + 66 |
2021 | 2,496 | 69.0 | + 155 |
2020 | 2,341 | 68.8 | + 271 |
2019 | 2,070 | 59.6 | - 14 |
2018 | 2,084 | 61.9 | - 47 |
2017 | 2,130 | 65.2 | - 31 |
In addition to national debt, EU Member States are increasingly taking on debt together at the European level. Germany is estimated to account for a share of €60 billion, or 1.5% of GDP. Eurostat recently published both the Maastricht debt of the EU institutions and bodies and the Maastricht debt of the EU institutions and bodies after consolidation of assets against Member States for the first time. The consolidated debt is adjusted to the extent that EU debt is offset by claims of the EU on Member States. The consolidated debt stems, in particular, from the debt-financed grants of the EU off-budget entity Next Generation EU, which commenced operations in 2021. It stood at €148 billion in 2022 (2021: €73 billion) and is estimated to have risen to €240 billion in 2023. Ultimately, consolidated debt is largely repaid through the EU budget, and Member States are therefore involved in financing it through their financial contribution to the EU budget. Germany’s financial contribution currently amounts to around 25% of the budget.
Year | Consolidated debt of EU institutions and bodies (€ billion)* | Germany’s financial contribution (€ billion) | GDP (%) |
2023 | 240 | 60 | 1.5 |
2022 | 148 | 37 | 1.0 |
2021 | 85 | 21 | 0.6 |
| * Sources: Eurostat, 2023 Bundesbank estimate. |
Background: The EU Member States report data on their general government fiscal balance and debt to the European Commission each year at the end of March and end of September in what are known as EDP notifications. The Bundesbank calculates Maastricht debt, the definition of which is harmonised across the European Union. Germany’s Maastricht debt is largely based on the “debt of the general government budget”, which is calculated using national government finance statistics methodology. The Federal Statistical Office published its figures for this on 27 March 2024. Maastricht debt is generally higher (by €178 billion in 2023), as it is defined more broadly in methodological terms.
FAQs
German general government debt up in 2023 by €62 billion to €2.62 trillion, debt ratio down from 66.1% to 63.7% General government debt in Germany increased by €62 billion in 2023 to €2.62 trillion.
Why Germany has so much debt? ›
The National Debt Of Germany
The German government was forced to bail out some banks during the financial crisis of 2008. The government still owns those banks and it includes their debts in the record of the public debt of the nation.
How much money does Germany owe the USA? ›
Total Debt Held: $91.3 Billion
As of January, the amount owed by Germany to the US is $91.3 billion.
What is Germany's national debt in 2024? ›
The ministry expects the debt-to-GDP ratio at 64% in 2024, according to projections for the EU Commission, which were approved by the cabinet on Wednesday. In 2023, the debt-to-GDP ratio was at 63.6%.
Why did Germany owe so much money? ›
But most embarrassing of all was the punitive peace treaty Germany had been forced to sign. The Treaty of Versailles didn't just blame Germany for the war—it demanded financial restitution for the whole thing, to the tune of 132 billion gold marks, or more than $500 billion today.
How big is the German national debt? ›
Germany National Government Debt reached 2,901.2 USD bn in Dec 2023, compared with 2,780.7 USD bn in the previous quarter.
Is Germany in financial trouble? ›
Public investment declined in the 1990s and, since then, has barely been enough to offset depreciation. This puts Germany near the bottom of advanced economies in public investment. Money that has been budgeted for investment is routinely underspent, often because of staff shortages in municipalities.
Why is Germany having a budget crisis? ›
Germany's constitutional court ruled last week that the government's move to re-allocate emergency debt taken on during the pandemic to the current budget. This has left a 60-billion-euro funding gap in the government's budget which is especially hitting climate policies.
What is the debt crisis in Germany? ›
The crisis exploded on 15 November, when Germany's constitutional court declared that the government's budget was illegal for breaking German laws against taking on new debt. That left a hole of tens of billions of euros.
Who owes the US the most money? ›
Nearly half of all US foreign-owned debt comes from five countries.
| Country/territory | US foreign-owned debt (January 2023) |
|---|
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
6 more rowsThe $34 trillion gross federal debt includes debt held by the public as well as debt held by federal trust funds and other government accounts. In very basic terms, this can be thought of as debt that the government owes to others plus debt that it owes to itself.
How much does China owe the United States? ›
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
Does Germany have a debt ceiling? ›
At the federal level, the law limited the budget deficit to 0.35% of the GDP beginning in 2016 and German states that approved the law were prohibited from taking on debt after 2020. Three states, Berlin, Mecklenburg-Vorpommern and Schleswig-Holstein, did not establish the law in their constitutions.
What is the debt of Switzerland? ›
Net federal debt stood at CHF 142 billion at the end of 2023, which corresponds to a debt ratio of 17.8% of GDP. Switzerland's level of debt is low by international standards. The Confederation has the debt brake to thank for this. It has allowed for a considerable reduction in federal debt.
Does Germany have a lot of debt? ›
German debt has grown since 1950 and currently stands at €2.5 trillion ($2.68 trillion).
What country owes the most debt 2023? ›
Japan has the highest debt to GDP ratio, standing at 262%. This is followed by Venezuela at 241% and Greece at 193%.
What is the total national debt for 2023? ›
30, 2023, the federal debt was $33.2 trillion—up $2.2 trillion from FY 2022—and interest on the debt was $875.5 billion, an increase of $151.9 billion from FY 2022.
Which country is in the most debt? ›
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
How much debt is Russia in 2023? ›
Buy Selected Data
| country/region | Last |
|---|
| External Debt: % of GDP (%) | 15.7 2023 |
| External Debt: Short Term (USD mn) | 88,886.6 Dec 2023 |
| External Debt: Short Term: % of GDP (%) | 4.4 2023 |
| Forecast: Current Account Balance (USD bn) | 67.400 2029 |
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