Germany Government Debt to GDP (2024)

FAQs

How much is Germany's debt to the GDP? ›

It stood at €148 billion in 2022 (2021: €73 billion) and is estimated to have risen to €240 billion in 2023.

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.

Debt-to-GDP measures the financial leverage of an economy. One of the Euro convergence criteria was that government debt-to-GDP should be below 60%.

Japan has the highest debt-to-GDP ratio at 255%. Its national debt has floated above 100% of its GDP for more than two decades.

With a 70% share of the GDP, the service sector contributes by far the largest share of the country's economy. In addition, Germany is a top destination for investors, attracting an ever increasing number of companies to make greenfield investment there.

As a result, the balance stood at 4¼% of GDP, which is the lowest value since 2003.

While Germany's long-term debt to the United States of more than a billion dollars is large in an absolute sense, it is less per capita than similar debts owed by several other countries.

What is Germany's private debt to GDP? ›

Private Debt to GDP in Germany decreased to 170.70 percent in 2023 from 177.30 percent in 2022. Private Debt to GDP in Germany averaged 171.30 percent from 1995 until 2023, reaching an all time high of 185.30 percent in 2002 and a record low of 154.30 percent in 1995.

Germany's gross external debt amounted to €6.2 trillion at the end of the first quarter 2024; relative to gross domestic product (GDP) it increased in the period under review.

Germany's Real Challenges are Aging, Underinvestment, and Too Much Red Tape. Germany is struggling. It was the only G7 economy to shrink last year and is set to be the group's slowest-growing economy again this year, according to our latest projections. Some pundits say Germany's economic model is irreparably broken.

In total, the Allies took about $413 million worth of reparations (both in money and in goods) from their occupation zones. In 1952, the London Agreement on German External Debts assessed the final reparation figure at $3 billion. Germany has yet to pay off its debts for World War II.

The German economy went through a recession in 2023 when real GDP declined by 0.2% (according to the latest GDP release by the German Federal Statistical Office). Despite continued headwinds, it recovered slightly at the start of 2024, with economic activity expected at 0.2% qoq in the first quarter of 2024.

The average GDP for fiscal year 2023 was $26.97 T, which was less than the U.S. debt of $33.17 T. This resulted in a Debt to GDP Ratio of 123 percent. Generally, a higher Debt to GDP ratio indicates a government will have greater difficulty in repaying its debt.