Germany Q2 GDP grows 0.6pc

Published: August 25, 2017 20:38:55 | Updated: October 22, 2017 11:02:22

The German economy grew by 0.6 per cent in the second quarter of 2017, helped by private consumption and state spending, data showed on Friday.

Confirming a preliminary reading for growth, the Federal Statistics Office said consumption rose by 0.8 on the quarter and state spending 0.6 per cent.

Private consumption contributed the growth by 0.4 percentage points, according to Reuters.

Investment in construction jumped 0.9 per cent, adding 0.1 percentage points to growth.

A growing population, increased job security and record-low interest rates are fuelling consumption and helping a property boom in Europe’s biggest economy.

Investment in machinery and equipment rose 1.2 per cent, adding 0.1 percentage points to the gross domestic product (GDP) growth rate.

The data also showed that exports rose 0.7 per cent on the quarter and imports increased by 1.7 per cent, resulting in trade subtracting 0.3 percentage points from growth.