clear
Saturday January 20th, 2018 1:38AM

German economy grew in 2017 at fastest pace in 6 years

By The Associated Press
Related Articles
  Contact Editor

BERLIN (AP) — The German economy accelerated last year to grow by 2.2 percent, putting in its strongest performance for six years thanks primarily to increasing demand at home, official data showed Thursday.

The figure released by the Federal Statistical Office was the strongest since 2011, when Europe's biggest economy grew by 3.7 percent. Gross domestic product expanded by 1.9 percent in 2016 and 1.7 percent in 2015.

Household spending by Germans was up 2 percent last year, while investment in machinery and other equipment was up 3.5 percent.

Exports — a traditional strength of the German economy — grew by 4.7 percent, a much stronger performance than the previous year's 2.6 percent. But they were outpaced by imports, which expanded by 5.2 percent, up from 3.9 percent in 2016. Overall, foreign trade contributed only 0.2 percentage points to last year's GDP growth.

Eight consecutive years of growth have also boosted Germany's public finances. Germany had its fourth budget surplus in a row last year, totaling 1.2 percent of GDP, according to Thursday's report. That was up from 0.8 percent the previous year as growth in the state's income outpaced increased spending.

The statistics office offered a rough estimate that the economy grew by a bit more than a half-percent in the fourth quarter compared with the previous three-month period. However, it won't release an official figure until mid-February, after data for December become available.

The same things that helped German growth in the last two years should remain in place this year, said Carsten Brzeski, an economist at ING-DiBa — low interest rates, a relatively weak euro, strong domestic momentum and a recovering eurozone economy. But he pointed to signs of weakness in areas such as digitalization, services and education and called for the incoming government to tackle those.

A major German business group called for more investment in education and infrastructure. Martin Wansleben, the Association of German Chambers of Commerce and Industry's chief executive, said there also should be financial "relief for companies, in any case no tax increases."

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
German economy grew in 2017 at fastest pace in 6 years
Official data show that the German economy, Europe's biggest, accelerated last year to grow by 2.2 percent
4:51AM ( 11 minutes ago )
Syrian insurgents in counteroffensive in northwestern area
Syrian insurgent groups launch counteroffensive against government forces in northwest, capture villages, take prisoners
4:46AM ( 16 minutes ago )
Final day of talks on possible German government coalition
Chancellor Angela Merkel's conservatives were sitting down for a final day of talks with their prospective center-left partners to try and determine if there was enough common ground to begin formal coalition talks
4:41AM ( 21 minutes ago )
Associated Press (AP)
N Korea: Popularity of 'Fire and Fury' foretells Trump's end
North Korea has found good material to attack U.S. President Donald Trump: Michael Wolff's bombshell new book, "Fire and Fury"
3:41AM ( 1 hour ago )
Asian shares mixed after Wall Street rally fizzles
Asian stock markets mixed after Wall Street posts first losses of 2018
2:53AM ( 2 hours ago )
Another GOP governor seeks exclusion from drilling proposal
Another Republican governor is asking the Trump administration to exclude his state from a plan to open more U.S. coastal waters to offshore oil drilling
12:30AM ( 4 hours ago )
AP Business
Coal executive's 'wish list' finds success under Trump
A coal company executive's "wish list" of actions that seek to roll back environmental and mine safety regulations has caught the eye of the Trump administration
12:26AM ( 4 hours ago )
Norway's PM makes business case of 'green economy' to Trump
Norway's prime minister is telling President Donald Trump that her country remains committed to the Paris climate agreement, making the business case of the "green economy" to the real estate developer-turned president
9:01PM ( 8 hours ago )
New Toyota-Mazda plant will bring 4,000 jobs to Alabama
Toyota and Mazda have chosen Southern U.S. state of Alabama as site of new $1.6 billion joint-venture plant
6:44PM ( 10 hours ago )
AP Business - Economy
Syrian insurgents in counteroffensive in northwestern area
Syrian insurgent groups launch counteroffensive against government forces in northwest, capture villages, take prisoners
4:46AM ( 16 minutes ago )
Final day of talks on possible German government coalition
Chancellor Angela Merkel's conservatives were sitting down for a final day of talks with their prospective center-left partners to try and determine if there was enough common ground to begin formal coalition talks
4:41AM ( 21 minutes ago )
Chinese authorities demolish well-known evangelical church
Authorities in northern China's coal country have demolished a Christian mega-church that has long clashed with the government
4:00AM ( 1 hour ago )
N Korea: Popularity of 'Fire and Fury' foretells Trump's end
North Korea has found good material to attack U.S. President Donald Trump: Michael Wolff's bombshell new book, "Fire and Fury"
3:41AM ( 1 hour ago )
Hundreds search for victims of California mudslide
Hundreds of searchers continued the grueling work Thursday of hunting for survivors and digging up bodies in the sea of mud and wreckage left by flash flooding in this wealthy coastal enclave
3:21AM ( 1 hour ago )