Germany’s social spending hits record high

Germany’s social spending has reached record levels, according to analysts at the Ifo Institute.

Around 70% of social spending went towards pensions and healthcare last year, the institute said.

Between 2019 and 2025, Germany’s social spending rose by 11.5% in real terms, equivalent to an additional €104 billion. Social spending accounted for 35% of GDP.

Experts said demographic changes were increasing the redistribution of the burden between generations within Germany’s welfare system.

By Aghakazim Guliyev