By Maria Martinez
BERLIN (Reuters) -Germany’s federal and state government tax revenue rose 11.1% in March compared with the same month a year ago, the finance ministry said in its monthly report on Wednesday.
Total tax revenue reached 86.16 billion euros ($98.91 billion), according to the report.
From January to March, tax revenues increased by 9.5% compared to the same period in 2024, reaching a total of 222.26 billion euros. The figure in March 2024 was depressed by particularly weak consumer demand.
Europe’s ailing, largest economy is under pressure after it contracted in 2024 for the second year in a row.
The German government cut its economic forecast for this year and now foresees stagnation instead of 0.3% growth, a source told Reuters on Tuesday.
Early indicators suggest a slight economic recovery in the months ahead, but this is likely to be dampened by trade policy developments, the report said.
Germany is expected to be badly affected by U.S. tariffs due to its export-oriented economy. The U.S. was Germany’s biggest trading partner in 2024 with two-way goods trade totalling 253 billion euros ($289.66 billion).
For 2025, tax experts see tax revenue increasing to 893.8 billion euros, up 3.8% from the previous year, according to the report.
($1 = 0.8734 euros)
(Reporting by Maria Martinez; editing by Kirsti Knolle, Emma-Victoria Farr and Mark Heinrich)
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