Bloomberg News

German September Tax Jumps 7.3%; Government Warns of Slowdown

October 21, 2011

Oct. 21 (Bloomberg) -- Growth in German tax revenue accelerated in September, led by tax collection at the federal level, the Finance Ministry said, cautioning that economic growth will slow.

Tax revenue jumped 7.3 percent to 48.8 billion euros ($66.9 billion) after growing 4 percent in August, the Berlin-based ministry said in its monthly report. The government aims to collect 4.4 percent more tax for the year as a whole.

“The economic upswing in Germany gained momentum during the summer months after the pause in the second quarter,” the ministry said. Still, as sentiment worsens because of the euro- region debt crisis, the economy will expand at a “clearly slower pace” in the second half of the year, it said.

German investor confidence fell to the lowest in almost three years in October, the ZEW Center for European Economic Research in Mannheim said Oct. 18, citing its index of investor and analyst expectations. That’s consistent with a recession starting in the final quarter, said Christian Schulz, an economist at Joh Berenberg Gossler & Co. in London.

--Editors: Andrew Atkinson, Andrew Langley

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

To contact the editors responsible for this story: James Hertling at jhertling@bloomberg.net


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