A monthly report submitted by the German Finance Ministry showed that in September federal and state governments' tax revenues increased by 6.9% per annum, to 86.2 billion euro, after an increase of 5.3% per annum in August. Commenting on the report, the Ministry of Finance stated that lackluster economic growth has been made for a very volatile tax take this year. According to the final data from Destatis, German GDP decreased by 0.1% QoQ in the 2nd quarter after an increase of 0.2% QoQ in the 1st quarter. Private consumption fell by 0.2%, swinging from a 0.3% rise in Q1. Meanwhile, government spending grew by 1.0%, a reversal from a 0.1% fall in Q1. In annual terms, GDP remained unchanged, compared with a 0.1% contraction in Q1. According to government forecasts, GDP will decrease by 0.2% in 2024.
Data from the Ministry of Finance also showed that from the beginning of 2024 (to September) tax revenue increased by 2.9% compared to January-September 2023, to 626 billion euros.
Analysts predict that for the whole of 2024, tax revenues will increase to 863.68 billion euros, which is 4.1% more than in the previous year.