Consumer Debt Declines in Berlin and Brandenburg, but Challenges Persist

Berlin sees lowest number of indebted households in 20 years, though debt ratio rises slightly due to population adjustments.

The number of indebted households in Berlin dropped by 1.3% in 2024, reaching the lowest level in two decades with approximately 303,600 cases.
Brandenburg experienced a 2.9% decline in household debt cases, marking one of the strongest decreases in Germany alongside other regions like Saarland and Thüringen.
Berlin's debt ratio increased slightly to 10.16%, attributed to a downward revision of the city's population following the 2022 census, despite the drop in absolute debt cases.
Economic uncertainty and restrained consumer spending are cited as key factors driving the decline in absolute debt figures across both regions.
Analysts warn of potential reversals in 2025 due to rising living costs, higher unemployment, and an increase in corporate bankruptcies.