By Maria Martinez
BERLIN (Reuters) – Germany’s federal and state government tax revenue rose 3.8% in 2024 from the previous year despite the economy contracting, the finance ministry said in its monthly report on Thursday.
Total tax revenue reached 861.1 billion euros ($897.4 billion), according to the report, above the forecast of a 3.1% year-on-year increase to 855.2 billion euros
Increasing competition from abroad, high energy costs, still elevated interest rates and uncertain economic prospects have taken their toll on the Germany economy, which contracted in 2024 for the second year in a row.
How to revive Europe’s largest economy will be a central theme in a snap national election scheduled for Feb. 23.
“The German economy is still in a state of stagnation,” the monthly report said, adding that this is not likely to change in the short term.
The government has cut its 2025 growth forecast to 0.3% from a previous forecast of 1.1% on trade tensions and uncertainty over the election.
Federal and state tax revenue rose 3.9% in December from a year earlier, the finance ministry said, to 113.2 billion euros.
($1 = 0.9595 euros)
(Reporting by Maria Martinez; Editing by Kirsten Donovan)
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