(MENAFN) Germany's public debt has reached an all-time high of €2.37 trillion (USD2.6 trillion) at the end of 2022, according to provisional data released by the Federal Statistical Office (Destatis). The debt owed by the overall public budget to the non-public sector rose 2 percent year-on-year or €46.1 billion from a year earlier. This surge in debt is attributed to the rising financing requirements due to the coronavirus pandemic and the energy crisis.

Compared with the end of the third quarter of last year, debt grew 1.8 percent, or by €41.9 billion. The significant increase in debt is a cause for concern, as it may have a negative impact on the country's economy and financial stability. The per capita debt amounted to €28,155, which is a considerable burden for the German population.

The non-public sector comprises credit institutions and the remaining domestic and non-domestic sector, such as private businesses in both Germany and abroad. The rising debt owed to the non-public sector is indicative of the challenging economic conditions faced by Germany due to the pandemic and the energy crisis. The government's efforts to mitigate the impact of these crises have resulted in a significant increase in public debt, which may take years to pay off.

The high level of public debt is a concern for the German government, which may need to implement austerity measures to reduce the debt burden. The government may also need to explore other options, such as increasing taxes or reducing spending, to address the rising debt levels. The situation in Germany underscores the challenges faced by governments worldwide as they grapple with the economic fallout of the pandemic and other crises.

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