Technical Analysis

German government’s public deficit will be much higher in 2023 than previously thought

Spiegel news magazine report (via Reuters), citing finance ministry documents:

  • German government’s public deficit reaching 4.5%, due mainly to energy relief measures
  • A deficit of 4.5% of gross domestic product (GDP) is more than double the amount originally calculated, according to Spiegel
  • deficit should drop to 2% in 2024
  • to 1.5% in 2025 and 2026, as state aid becomes limited and expires over the course of 2024 under current government plans

Given the extent of energy relief measures is this really all that much of a surprise?

EUR update:

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