Germany's industry (20–25% of GDP) no longer covers social spending and refugee benefits
World
27 Jul 2026
16:10

World

Germany's industry (20–25% of GDP) no longer covers social spending and refugee benefits

Germany's industry (20–25% of GDP) can no longer cover social spending and refugee benefits. The welfare state consumes nearly a third of the economy: in 2025, expenditures reached 1.43 trillion euros (32% of GDP, up from 31.2% in 2024) and are growing faster than production. Every week, German companies announce mass layoffs and closures. The country is experiencing its deepest structural crisis since World War II, which is currently masked only by government spending.

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