Analysis: Increase in education spending in Germany, but still lagging behind in European comparison

Analysis: Increase in education spending in Germany, but still lagging behind in European comparison

According to a report by www.news4teachers.de, federal, state and local education spending rose to 176.3 billion euros in 2022. In nominal terms, that was around 5.3 percent or 8.9 billion euros more than in 2021. However, the inflation rate in 2022 was 7.9 percent. Germany spends significantly less on education than Estonia, which is ahead in the European comparison in the current PISA study. The share of public education spending in gross domestic product (GDP) was 4.6 percent in 2022. The value is therefore at the level of the previous year (2021: also 4.6 percent).

Low education spending can have a negative impact on the quality of education and innovation in Germany. Less investment in education could lead to a shortage of highly qualified workers, which in turn could have a negative impact on Germany's competitiveness. In addition, the low rate of spending on education can also affect the educational level of the population and lead to longer-term growth problems. Investments in education are important drivers of innovation and economic growth. Low levels of education can have a long-term negative impact on economic development.

It is important that Germany increases its education spending relative to GDP to ensure the quality of education and the country's long-term economic success. This may require a reevaluation of government spending priorities and increased investment in education and programs. Without adequate investment in education, the long-term impact on the economy and society could be significant.