1 Economic conditions
1.1 Underlying trends: Economic recovery in Germany stalling
1.2 Industry remains in a sluggish phase
1.3 No stimulus from private consumption
1.4 Labour market remains robust
1.5 Commodity prices recently mixed
1.6 Inflation rate down a little further in February, core rate up
2 Public finances
2.1 Statutory health insurance scheme
2.1.1 Sharp deterioration in annual result for 2023
2.1.2 Significant reduction in revenue
Central government’s special funds to stabilise contributions declined by €12 billion (to €2 billion; central government’s multi-year loan of €1 billion is not included). Because pandemic-related payments have largely ceased, central government reduced the associated refunds by €20 billion to just under €1½ billion. Meanwhile, central government paid additional funds to hospitals to ease the burden of higher energy costs (+€4 billion).
2.1.3 Only a small decline in expenditure
2.1.4 Outlook for 2024 and beyond
2.2 Public long-term care insurance scheme
2.2.1 Surplus in 2023
At mid-year, the contribution rate rose by 0.35 percentage point to 3.4 %. 12 Overall, this led to additional revenue of €3 billion. Coronavirus-related expenditure fell considerably, by just over €4 billion (to €½ billion), while special funds from central government for this purpose decreased less significantly (by €2½ billion). This eased pressure on the finances of the long-term care insurance scheme to the tune of just over €1½ billion compared with 2022. The transfers to the long-term care provident fund in the amount of €1½ billion were not made (these will be made up in 2024).
2.2.2 Strong growth in revenue
2.2.3 Total expenditure curbed by non-recurring effects
2.2.4 Outlook for 2024 and beyond
List of references
Federal Statistical Office (Destatis) (2024), New orders in manufacturing in January 2024: − 11.3 % on the previous month , press release of 7 March 2024. German Chamber of Commerce and Industry (Deutsche Industrie- und Handelskammer, DIHK ) (2024), The poor sentiment among companies is solidifying , press release of 15 February 2024. Deutsche Bundesbank (2023a), Public finances, Monthly Report, December 2023, p. 8. Deutsche Bundesbank (2023b), Public finances, Monthly Report , March 2023, pp. 15 f. Deutsche Bundesbank (2023c), Public finances, Monthly Report, M arch 2023, p . 16.