Germany's finances in black as growth picks up

23rd August 2013, Comments 0 comments

Germany's finances are back in the black as growth rebounded in the second quarter, official data showed on Friday.

Germany ran up a general government surplus of 8.5 billion euros ($11.3 billion) in the first six months, equivalent to 0.6 percent of output, the national statistics Destatis calculated.

"When measured by the gross domestic product (of 1.3 trillion euros), this results in a ratio of 0.6 percent. The budgets of central government, state governments, local government and social security funds benefited from a generally good employment situation and a stable economic development in the first half of 2013 compared with other European countries," Destatis said in a statement.

At the same time, the statisticians confirmed a preliminary estimate that Europe's biggest economy expanded by 0.7 percent in the second quarter, powered by robust consumer and public spending, as well rising investment.

Private consumption grew by 0.5 percent, public spending was up 0.6 percent and gross capital formation or investment rose by 0.9 percent, Destatis calculated.

This was partly due to "weather-related catch-up effects following the unusually long and cold winter," the statistics office said.

In addition, 2.2 percent more goods and services were exported in the second quarter and imports were up by 2.0 percent.

"Consequently, the balance of exports and imports supported GDP, contributing 0.2 percentage points to growth," it said.


© 2013 AFP

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