By John Meyer, consultant in financial markets, for Eurasia Business News, March 29, 2023

Public debt reached all-time high of roughly 2.37 trillion euros at the end of 2022.  Photo : Berlin, Germany, 2021.

The debt owed by the overall Germany’s public budget (Federation, Länder, municipalities and associations of municipalities, social security funds, including all extra budgets) to the non-public sector amounted to 2,367.3 billion euros at the end of 2022, reported the Federal Statistical Office of Germany.

Based on provisional results, the Federal Statistical Office (Destatis) reportED that public debt rose by 2.0%, or 46.1 billion euros, compared with the end of 2021, thus reaching a new all-time high of € 2.37 trillion.

Compared with the end of the third quarter of 2022, debt increased by 1.8%, or 41.9 billion euros. Per capita debt amounted to 28,155 euros. The non-public sector comprises credit institutions and the remaining domestic and non-domestic sector, for instance private businesses in Germany and abroad.

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At the end of 2022, the debt of the federal states of Germany amounted to € 606.8 billion – 5.0% / or € 31.7 billion less than at the end of 2021. Compared to the third quarter of 2022, the federal states also recorded a decrease in debt by 1.2%, or € 7.3 billion The largest percentage decrease in debt compared to the end of 2021 was recorded in Bremen (-37.8%), Saxony (-12.2%) and Hesse (-9.0%).

With the exception of Saxony-Anhalt, all Länder were able to reduce their debt in 2022 compared to the end of 2021. In Saxony-Anhalt, debt increased by 4.7%. The main reason is the increase in the issuance of securities to ensure favorable interest rates in anticipation of the expected increase in interest rates in the capital market.

The inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +8.7% in February 2023. In January 2023, the inflation rate had been +8.7% as well. “The inflation rate remains at a high level”, says Ruth Brand, President of the Federal Statistical Office. She adds: “Households felt the impact of higher food prices also in February, as they increased even more than energy prices.” The Federal Statistical Office (Destatis) also reports that consumer prices in February 2023 were up 0.8% on January 2023.

The euro area annual inflation rate was 8.5% in February 2023, down from 8.6% in January. A year earlier, the rate was 5.9%. European Union annual inflation was 9.9% in February 2023, down from 10.0% in January. A year earlier, the rate was 6.2%. These figures are published by Eurostat, the statistical office of the European Union.

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