Higher consumer spending helps boost German economy

Good news?

In the first three months of the year Germany’s economy grew strongly. It was driven by investment and consumption, according to new official figures.

First-quarter GDP growth was at 0.6 per cent, this is faster than the October-December figure of 2016 which sat at 0.4 per cent.

German statistics authority Destatis said that household state spending was strong and firms invested their money into construction and equipment.

Foreign trade also helped with the boost as exports managed to increase faster than imports.

Germany has the largest economy in the Eurozone. Its strength has prompted some concern in Brussels.

Back in February the European Commission said Germany’s current account surplus was too big. This measures the balance of goods, services and investments in and out of the country.

It also said that cutting the surplus would help with the Eurozone.