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11h ago

Germany's Half-Year Deficit Falls to €28.9 Billion at 1.3% of GDP

The figures use EU accounting, offering limited guidance for the full-year outcome.

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Das deutsche Staatsdefizit ist im ersten Halbjahr deutlich gesunken. Es lag bei 28,9 Milliarden Euro und damit um 19,4 Milliarden Euro niedriger als im ersten Halbjahr des Vorjahres 2024, wie das Statistische Bundesamt am Freitag mitteilte.

Overview

  • State receipts rose 6.5% to about €1.042 trillion, outpacing a 4.3% increase in expenditures to just under €1.071 trillion.
  • The federal government's shortfall was €16.7 billion after a €10.5 billion improvement, and state deficits narrowed by €10.3 billion to €1.3 billion.
  • Municipalities recorded a financing gap of €14.2 billion after a €4.7 billion deterioration, while social insurance posted a €3.3 billion surplus.
  • Key revenue moves included VAT up 6.9%, income tax up 4.6%, and social contributions up 8.9%, while interest income fell 18.9%.
  • Destatis urged caution in interpreting half-year results, and IfW economist Jens Boysen-Hogrefe warned deficits could rise without consolidation given defense and infrastructure plans.