clear
Monday December 11th, 2017 12:39AM
1:33PM ( 11 hours ago ) Weather Alert

German economy accelerated in 2016 thanks to higher spending

By The Associated Press
Related Articles
  Contact Editor

BERLIN (AP) — Germany's economy accelerated slightly last year to grow by 1.9 percent, narrowly beating expectations thanks largely to household and government spending, official data showed Thursday.

The figure released by the Federal Statistical Office was slightly better than Germany's performance in the previous two years, and also a bit above the 1.8 percent growth that the government and economists had forecast. Gross domestic product increased by 1.7 percent in 2015 and 1.6 percent in 2014.

The statistical office offered a rough estimate that the economy grew by about half a percent in the fourth quarter compared with the previous three-month period. However, an official fourth-quarter figure won't be released until next month, and statisticians warned that the estimate should be treated with caution.

Domestic spending once again powered the economy, which is traditionally export-heavy, to stronger growth.

Household spending was up 2 percent last year and government consumption spending 4.2 percent, the latter partly a result of spending to deal with the previous year's large influx of asylum-seekers. Investment in construction was up 3.1 percent and spending on equipment such as machinery and vehicles rose 1.7 percent.

Foreign trade had a slightly negative impact on GDP as a 3.4 percent rise in imports outpaced a 2.5 percent increase in exports.

Germany has now enjoyed seven consecutive years of economic growth, a contrast with weak performances in many other European countries. That has translated into healthy government finances.

The country had a 19.2 billion-euro ($20.2 billion) budget surplus last year, or 0.6 percent of GDP. That was the third consecutive annual fiscal surplus, down slightly from the previous year's 0.7 percent.

Of the 18 other eurozone countries, only Estonia and Luxembourg are expected to have produced a surplus last year, statistical office head Dieter Sarreither said.

"Despite the stock market crash in China, Brexit, Turkey, Trump and Italy, the economy performed its best growth year since 2011," said ING-DiBa economist Carsten Brzeski. "Strong domestic demand has shielded the German economy against most external risks."

He argued that the biggest risk is complacency, and that Germany urgently needs structural reforms along with stronger investment — but "it is very unlikely that it will get any of these before the elections" expected in September.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
10 sailors missing in collision between US warship, tanker
At least 10 U.S. sailors are missing after the USS John S. McCain collided with a tanker east of Singapore, the second accident involving a ship from the Navy's 7th Fleet in two months
1:14AM ( 3 minutes ago )
US warship collides with tanker near Singapore; 10 missing
At least 10 U.S. sailors are missing after the USS John S. McCain collided with a tanker east of Singapore, the second accident involving a ship from the Navy's 7th Fleet in two months
12:12AM ( 1 hour ago )
Legendary comedian Jerry Lewis knew how to laugh and cry
If jokes are the children of pain, then Jerry Lewis was a natural father
12:05AM ( 1 hour ago )
Associated Press (AP)
Asian shares mixed ahead of Korean drills, banker meeting
Asian stocks are mixed as investors monitored joint military drills between U.S. and South Korean forces and awaited a key meeting of central bankers later this week
11:30PM ( 1 hour ago )
Eclipse eve: Millions converge across US to see sun go dark
Millions of eclipse watchers are converging on a narrow corridor stretching from Oregon to South Carolina to watch the moon blot out the sun Monday
9:55PM ( 3 hours ago )
1979 Klan-Nazi attack survivor hopes for a 'justice river'
Leader of a march attacked by Klan, Nazis in Greensboro in 1979 sees hope for a 'justice river'
6:28PM ( 6 hours ago )
AP Business
Trump remarks could sidetrack Democrats from other issues
Responding to Trump's remarks about white supremacist violence could sidetrack Democrats from issues important to a wider range of voters in 2018 midterm elections
11:10AM ( 1 day ago )
11 US states added jobs in July
11 US states added jobs in July, unemployment rate tumbled to record lows in 2 states
11:06AM ( 2 days ago )
Trump defends Confederate statues, berates his critics
Under fire over competence and moral leadership, Trump defends Confederate statues and attacks his critics
9:45AM ( 2 days ago )
AP Business - Economy
Legendary comedian Jerry Lewis knew how to laugh and cry
If jokes are the children of pain, then Jerry Lewis was a natural father
12:05AM ( 1 hour ago )
Jerry Lewis, Hollywood survivor, showman, dies at 91
Jerry Lewis epitomized what it meant to be a survivor in Hollywood
12:05AM ( 1 hour ago )
The Latest: Singapore helicopter evacuates 4 injured US crew
The U.S. Navy says four sailors injured in a ship collision were evacuated to a hospital
11:53PM ( 1 hour ago )
Boldin abruptly retires 2 weeks after signing with Bills
Receiver Anquan Boldin abruptly announces his retirement to focus on his humanitarian work just under two weeks after signing with the Buffalo Bills
11:44PM ( 1 hour ago )
The Latest: Trump expresses concern for warship crew
President Donald Trump is expressing concern for the crew of the USS John S. McCain, a Navy warship that collided with a tanker near Singapore
11:42PM ( 1 hour ago )