Germany's Public Debt Reaches 2.75 Trillion Euros in the Second Quarter
Special fund expenditures and the rising borrowing trend pushed the country's total public debt up by 1 percent in the second quarter of the year compared to the previous period.
According to preliminary data released by the Federal Statistical Office of Germany, the country's public debt stock rose to 2 trillion 753.5 billion euros in the second quarter of 2026.
Rate of Increase in Public Debt
The external debts of all public institutions in Germany, including federal, state, social security funds, and municipal levels, increased by 26.3 billion euros in the second quarter of the year. There was a 1 percent increase on a quarterly basis.
Impact of Special Funds on Borrowing
Expenditures by two special funds established for infrastructure and the defense industry were effective in the increase in federal borrowing. The debt of the Special Fund for Infrastructure and Climate Neutrality increased by 39.1 percent to 48.9 billion euros. Meanwhile, the debt of the German Armed Forces Special Fund rose by 8.8 percent to reach 51.6 billion euros.
State Debts and Economic Growth
During this period, the total debt of the federal states increased by 0.5 percent to reach a level of 646.2 billion euros. The German economy performed above expectations in the second quarter of the year.
Growth Forecasts and Budget Deficit
While economic institutes raised their growth forecast for this year to an average of 1.3 percent, the OECD set the expectation at 1.1 percent. The general government budget deficit ratio is projected to be 4.1 percent this year and 4.7 percent next year.