German Tax Revenues Surge Despite Persistent Economic Weakness

Federal and state tax revenues rose significantly in early 2025, driven by wage and consumer taxes, as the economy and labor market show little improvement.

• Tax revenues for the German federal and state governments increased by 8.1% in February 2025, totaling approximately 69 billion euros.
• This follows a nearly 9% rise in January 2025, marking continued growth in government revenues despite economic stagnation.
• Higher contributions from wage earners and consumers drove the increase, while corporate tax revenues declined compared to the previous year.
• The German economy remains weak, with no signs of significant recovery according to the latest economic data.
• Unemployment figures slightly improved in February 2025 but remain high, nearing three million, reflecting a stagnant labor market.

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