Consumer spending, investment drove German growth in Q1: data

24th May 2016, Comments 0 comments

The German economy, Europe's biggest, grew at its fastest rate in two years in the first three months of 2016, driven primarily by rising investment and household spending, data showed on Tuesday.

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, confirming a preliminary estimate released two weeks ago.

That was faster than the growth of 0.3 percent notched up in the preceding quarter, the statisticians said.

"Positive impulses came primarily from domestic demand," they said.

Investment, in particular, increased by 2.3 percent, with investment in equipment rising by 1.9 percent and construction investment up 2.3 percent on account of the mild weather.

Private consumer spending increased by 0.4 percent and public spending rose by 0.5 percent.

Exports grew by 1.0 percent in the three-month period, but because imports rose even more strongly, by 1.4 percent, foreign trade overall trimmed 0.1 percent off the headline growth rate, Destatis said.

© 2016 AFP

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