German Finance Ministry Sees Easing Downturn, Lower Tax Revenues

German recession may be easing, according to the latest monthly report from the Finance Ministry. The ministry said prices are likely to stay calm in the next months and the economic contraction may be slower in the second quarter of the year. The ministry also said that total tax revenues dropped 9.2% y/y in April, with wage taxes down 17.4% y/y and non-assessed income tax down 18.8% y/y. This highlights the negative impact rising unemployment has on tax revenues and the budget.