Germany: February MoF Report Signals Positive Fiscal Impulse in Q1
The February federal government monthly report confirms January’s figures . Over the period January to February, e xpenditure rose sharply, by 9.6 % Y/Y, while revenues fell by 6.5 %. As a result, the fiscal deficit already stands at € 34 bn ( Chart 1 , out of the €94bn or 2% of GDP targeted ) , financed entirely by cash reserves as in January , which have also been used to offset a net borrowing shortfall of €2 6.2 bn. Expenditures totalled € 93.1 bn in January -February . Consumption expenditure rose moderately, by 4.1 % Y/Y, to € 83.7 bn , led by operating expenditure...