Germany EUR

Germany Government Budget

Impact:
Medium
Source: Federal Statistical Office

Latest Release:

Date:
Big Surprise:
2.2%
| EUR
Actual:
-4.8%
Forecast: -7%
Previous/Revision:
1.5%
Period: 2020
What Does It Measure?
The Germany Government Budget measures the financial plan detailing the government's expected revenues and expenditures over a fiscal year. It assesses key areas including public spending, taxation, and the resultant budget surplus or deficit, serving as a crucial indicator of the country's fiscal health and economic management.
Frequency
The government budget is released annually, typically in the fall, with the finalized figures typically published alongside the first quarter of the upcoming fiscal year.
Why Do Traders Care?
Traders closely monitor the government budget as it has significant implications for economic stability and growth. A budget surplus can strengthen the Euro and attract investment, while a deficit can lead to currency depreciation and potential impacts on national debt perceptions.
What Is It Derived From?
The government budget is derived from a comprehensive analysis of tax revenues, public expenditures, and economic forecasts, incorporating data from various ministries and economic agencies. It involves extensive consultations with stakeholders and may include macroeconomic indicators and trends to support revenue and spending projections.
Description
The government budget reflects Germany's fiscal policy and priorities, including allocations for social welfare, infrastructure, and defense. It serves as a vital tool for assessing the government’s economic strategy and its alignment with broader economic goals like growth, stability, and employment.
Additional Notes
The government budget is often seen as a coincident economic measure, reflecting real-time fiscal conditions, and is closely watched in relation to other economic indicators like GDP growth and inflation. Additionally, it can be compared with budgets from other EU countries to assess fiscal discipline and policy approaches.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for Euro, Bearish for Stocks. Lower than expected: Bearish for Euro, Bullish for Stocks. A dovish tone signaling increased government spending and deficit financing is usually good for the Euro but bad for Stocks due to potential inflation concerns.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Jan 14, 2021
-4.8%
 -7%
1.5%
2.2%
Jan 15, 2020
1.5%
 1.1%
1.9%
 0.4%
Jan 15, 2019
1.7%
 0.6%
1%
1.1%
Jan 11, 2018
1.2%
0.8%
Jan 12, 2017
0.6%
 0.5%
0.7%
 0.1%