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- Germany general government achieved record surplus of 58 billion euros in 2018
Germany general government achieved record surplus of 58 billion euros in 2018
According to updated results of the Federal Statistical Office (Destatis), net lending of general government amounted to 58.0 billion euros in 2018 .In absolute terms, this was the highest surplus achieved by general government since German reunification. When measured as a percentage of gross domestic product at current prices (3,386.0 billion euros), the surplus ratio of general government was +1.7%. These are data based on the definitions of the European System of Accounts (ESA) 2010; they are used to monitor the budget situation in the EU Member States.
On the revenue side, large increases were recorded especially for income and net worth tax payments (+5.7%) and the continuing good employment trend led to a sharp increase in social contributions (+4.3%). Government revenue from interest and dividends received grew considerably (+16.1%). The reason was the markedly higher Bundesbank profit. The expenditure side was characterised by above-average increases in expenditure regarding gross fixed capital formation (+7.9%) and compensation of employees (+3.9%). Due to the continuing very low interest rates and lower debt, interest payments decreased again (-8.5%).
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