In Germany, tax revenues have been volatile due to a weak economy, but they have shown an upward trend over the past three months.

For the first ten months of 2024, tax revenues increased by 3.3% compared to the same period last year, totaling 686.9 billion euros.

In October 2024, tax revenues surged by 8.2% from September, amounting to nearly 61 billion euros.

Despite these increases, analysts project that total tax revenue for 2024 will reach 855.2 billion euros, reflecting a 3.1% rise from the previous year, which is a downgrade from earlier expectations of a 4.1% increase.

Unexpectedly, Germany's GDP grew by 0.2% in the third quarter of 2024, helping the country avoid a recession, although inflation rose in October, disrupting a previous downward trend.

Looking ahead, the German government anticipates a 0.2% contraction in the economy for 2024, marking the second consecutive year of declining output among G7 nations.

While forward-looking economic indicators have shown slight improvements, they remain low overall, highlighting ongoing economic challenges.

Economic analysts caution that the collapse of Germany's ruling coalition could exacerbate economic difficulties in the near future.

Additionally, the potential return of Donald Trump to the White House introduces uncertainty in foreign trade, particularly concerning possible new tariffs on EU imports that could impact German exports.