Soaring Public Debt in Germany Remains Unabated in the Year 2024
Germany's Public Debt Increases in 2024
Germany's public debt has seen a moderate increase in 2024, according to available data. The overall public debt increased by 2.6% year-on-year by the end of 2024, compared to the end of 2023.
The latest figures show that municipal debt in Germany increased by 10.3 percent (15.9 billion euros) compared to the previous year, totaling 170.5 billion euros. Despite some relief, municipalities and municipal associations in Saarland have a per capita debt of 2,824 euros, placing them third among the most indebted states. The most indebted municipalities were in North Rhine-Westphalia (3,577 euros per capita) and Hesse (3,009 euros per capita).
On the other hand, Rheinland-Pfalz's municipal level is no longer among the top 3 most indebted municipalities in 2024, due to reliefs within the state program "Partnership for the Debt Relief of Municipalities in Rhineland-Palatinate" (PEK-RP). The lowest municipal per capita debt was recorded in Brandenburg (581 euros), followed by Thuringia (867 euros) and Saxony (892 euros). Among the area states, the Saarland had the highest per capita value with 13,697 euros, followed by Schleswig-Holstein with 10,903 euros.
At the state level, state debt increased by 2.1 percent (12.5 billion euros) to 607.3 billion euros over the course of 2024. The average state debt per capita was 7,273 euros in 2024, an increase of 125 euros compared to the end of 2023.
The federal government was in debt to the tune of 1,732.7 billion euros at the end of 2024, an increase of 2.1 percent or 35.0 billion euros compared to the end of 2023. This corresponds to a per capita debt of 18,173 euros in Berlin, 17,571 euros in Hamburg, and 33,934 euros in Bremen, the city-states with the highest per capita debt.
Eurostat data for the first three quarters of 2024 indicate quarterly increases in general government gross debt driven mainly by deficit financing and net changes in financial assets, but do not specify separate levels for federal, state, municipal, or social security sectors. No specific figures breaking down debt by the levels of government or social security are presented in the retrieved sources.
In conclusion, while the total public debt has grown moderately in 2024, the exact distribution among federal, state, municipal, and social security sectors requires more specific official data that is not available in the searched documents. The private sector, according to Destatis, includes credit institutions and the rest of the domestic and foreign sector, including private companies at home and abroad. Social insurance was indebted to the tune of 0.12 euros (2023: 0.48 euros) per capita at the end of 2024, a decrease of 73.9 percent to 10 million euros (2023: 40 million euros).
The increase in Germany's public debt in 2024, as reported, is not limited to the federal level alone; it also extends to the municipal and state sectors. Furthermore, the data suggests that the business sector, particularly private companies, may also be contributing to the overall financial landscape of Germany.
