The German government has recorded a tax surplus of 45.3 billion euros (50.3 billion dollars) in the first half of the year, despite the economy shrinking in the second quarter.
Germany was able to profit from a stable job market through tax payments and social contributions from pay cheques, the federal statistics agency (Destatis) reported Tuesday.
Destatis also confirmed that German gross domestic product (GDP) shrank by 0.1 per cent in the second quarter of the year. The surplus represents 2.7 per cent of GDP.
The surplus is the sum of all government income for federal, state and local governments and social security funds, minus expenditures.
Germany's regular surpluses have turned it into an economic powerhouse in Europe, but have also sparked resentment from poorer countries that say Germany could help out by spending more and perhaps investing overseas.
Germany has also been criticized by the US for not spending enough on defence, despite agreements with NATO.
Despite the surplus, the German economy is increasingly showing signs of a recession. Germany currently forecasts economic growth of 0.5 per cent for the year. Last year, German GDP grew by 1.5 per cent.
If the economy shrinks two quarters in a row, economists would consider that a "technical recession."
However, should that be the case in Germany, the recession would only be mild.
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