Advertisement

German economy records strongest growth in 2 years

Author thumbnail
AFP/The Local - [email protected]
German economy records strongest growth in 2 years
Photo: DPA

The German economy, Europe's biggest, grew more than expected in the first three months of 2016, driven primarily by robust domestic demand, official data showed on Friday.

Advertisement

It was the strongest growth the German economy has recorded in two years, the Süddeutsche Zeitung reports.

German gross domestic product (GDP) expanded by 0.7 percent in seasonally and calendar-adjusted terms in the period from January to March, the federal statistics office Destatis said in a statement.

That was faster than the growth of 0.3 percent notched up in the preceding quarter and also faster than the 0.5 percent analysts had been predicting for the first quarter of this year.

"Positive impulses came primarily from domestic demand," the statisticians said.

"Private households and the government increased their spending and investments were also higher," the statement continued.

The mild weather boosted activity in the construction sector and investment in equipment also increased.

By contrast, foreign trade had a moderately dampening effect because exports did not grow as fast as imports, meaning the overall trade surplus - the balance between imports and exports - fell, Destatis said.

On a 12-month basis, GDP expanded by 1.3 percent in the January-March period compared with the same period a year earlier.

The data are still only preliminary. A more detailed breakdown of the different GDP components will be published on May 24, Destatis said.

 

More

Comments

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also