Germany's National Debt Surges to USD162.7B

(MENAFN) Germany's general government debt surged by €144 billion ($162.7 billion) throughout 2025, pushing the country's total debt load to €2.84 trillion ($3.2 trillion), as Berlin's borrowing appetite continued to expand across all levels of government.

Destatis, Germany's Federal Statistical Office, reported that central government debt — encompassing its off-budget entities — accounted for the largest share of the rise, climbing by €107 billion over the period.

State and local government borrowing added further pressure to the national balance sheet, with regional administrations recording an increase of €19 billion and municipalities contributing an additional €25 billion.

Notably, the debt held by social security funds more than doubled during the same period — a sharp acceleration that underscores widening fiscal stress within Germany's public financing framework.

The country's debt-to-GDP ratio rose by 1.3 percentage points, settling at 63.5%. In arithmetical terms, nominal GDP growth offered a partial offset, pushing the ratio down by two percentage points — however, the pace of debt accumulation outweighed that relief, driving the ratio upward by 3.3 percentage points on its own.

The scale of new borrowing also exceeded Germany's general government deficit of €119 billion, as published by the Federal Statistical Office, pointing to additional off-balance-sheet financing activity beyond headline deficit figures.

The calculations are based on an average EUR/USD exchange rate of 1.13 recorded over the course of last year.

MENAFN31032026000045017169ID1110924103