Fiscal Balance in Germany
Germany displayed strong fiscal discipline from 2013 to 2019, achieving budget surpluses through prudent spending and robust economic growth. This fiscal strength allowed Germany to implement substantial fiscal stimulus in response to the COVID-19 pandemic without significantly harming its overall fiscal position. By 2022, Germany's focus was on returning to pre-pandemic fiscal norms, balancing the need for improving competitiveness and boosting defense spending with its longstanding commitment to fiscal stability and debt reduction.
The fiscal balance in Germany averaged -0.3% of GDP in the decade to 2022, above the Euro Area average of -2.7% of GDP. The fiscal balance in 2022 was -2.5% of GDP. For more fiscal balance information, visit our dedicated page.
Germany Fiscal Balance Chart
Note: This chart displays Fiscal Balance (% of GDP) for Germany from 2019 to 2018.
Source: Macrobond.
Germany Fiscal Balance Data
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | 1.3 | -4.4 | -3.2 | -2.1 | -2.6 |
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects German fiscal balance projections for the next ten years from a panel of 33 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable fiscal balance forecast available for German fiscal balance.
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