

Market Analysis
German federal and regional tax revenues increased by 2.6% to €61.2 billion ($65.77 billion) in May compared to the previous year, driven by a one-off base effect that enhanced federal income, the finance ministry reported on Thursday.
While there was growth in wage tax and flat-rate withholding tax on interest and capital gains, revenues from sales tax and corporation tax were lower compared to the previous year.
In the first five months of the year, tax revenues in Europe's largest economy grew by 2.8% to €322.3 billion, according to the ministry's monthly report.
Recent tax estimates project an overall increase of 4.1% in this year's total tax revenues, reaching nearly €864 billion.
The government is currently engaged in discussions about the 2025 budget, with Chancellor Olaf Scholz's Social Democrats (SPD), the Greens, and Finance Minister Christian Lindner's Free Democrats (FDP) having significant disagreements in several areas.
Regarding the broader economy, the report indicated that while some indicators remained stagnant in May, the leading indicators increasingly suggest a moderate recovery for the remainder of the year.
Paraphrasing text from "Reuters" all rights reserved by the original author.