The forecast for local government expenditures on social protection in Germany indicates a steady upward trend from 2024 to 2028. In 2023, actual spending stood at approximately 144.5 billion USD PPP. The forecast shows a year-on-year increase of about 2.24% in 2025, 2.14% in 2026, followed by 2.06% in 2027, and finally 1.99% in 2028. The compounded annual growth rate (CAGR) from 2024 to 2028 is projected to be around 2.1%, showing consistent growth in expenditures.

Future trends to watch for include:

The impact of demographic changes and an aging population on social protection costs.
Potential policy changes affecting the allocation and efficiency of social protection funding.
The role of digital transformation in enhancing service delivery and optimizing expenditures.