Medical teams in Germany are facing a €1bn (£834m) shortfall in the coming years as the country struggles to meet growing demand.

Read moreRead moreThe German health system relies heavily on private insurance for about 90% of its services, and the country’s health ministry said on Friday that its funding has been cut by 1.5% since January, with just over half of the state’s budget allocated to private insurance.

“The health ministry is currently facing a shortfall of €1.4bn in 2017-18, with the remaining €2bn to be covered by private insurers,” the ministry said in a statement.

“This is partly due to the low level of private insurance and partly due a decline in the number of patients in care, which has contributed to the shortfall.”

The German government has also announced plans to cut €1 billion from its budget for mental health, which covers more than 60% of the countrys population.

The move comes amid a wider crisis for Germany, with a record 4.2 million asylum seekers crossing the border into the country this year, including over 1,000 children.