Germany's debt-to-GDP ratio projected to hit 78.25% by 2030
Germany's debt-to-GDP ratio is expected to rise to 78.25 per cent by 2030, up from 62.8 per cent in 2025, according to the country's stability council. The government deficit is also forecast to increase, driven by a €500 billion infrastructure fund and looser defence borrowing rules.
Germany's overall government debt is projected to reach 78.25 per cent of gross domestic product (GDP) by 2030, up from 62.8 per cent in 2025, the country's stability council said on Monday. The council coordinates federal and state finances.
The European Union's Maastricht Treaty stipulates that a member state's budget deficit should not exceed 3 per cent of GDP and overall government debt should not exceed 60 per cent of GDP. Germany's debt ratio is expected to significantly surpass that threshold.
The government deficit is forecast to rise from 2.9 per cent of GDP last year to 5.25 per cent next year. By 2030, the deficit is still expected to amount to 4.5 per cent of economic output, well above the Maastricht limit.
Borrowing is increasing due to a €500 billion (HK$4.39 trillion) infrastructure fund and looser borrowing rules for defence spending, the council said.
"After years of stagnation, an economic recovery is beginning to emerge," German Finance Minister Lars Klingbeil said after the stability council meeting. "Above all, it is our investments that are stimulating the economy and helping us after years of weak growth."