German economy grew last year at fastest rate since 2011

14:45 | 15/01/2018 Global Economy

Germany’s economy expanded by 2.2 per cent last year — the highest rate since 2011.

German economy grew 2.2% last year - Photo: Rte.ie

The figure, published last week by the Federal Statistics Agency, confirms 2017 was a bumper year for the eurozone’s economic powerhouse.

However, economists had expected an even stronger performance, with an average forecast of 2.5 percent. On a calendar adjusted basis, growth clocked in at 2.5 per cent, also the highest reading in six years.

The economy was boosted by higher levels of consumption by German shoppers. Investment levels were also relatively high.

Low levels of unemployment have helped boost spending. The Federal Statistics Office confirmed last Thursday that the number of people working in Germany was in 2017 at its highest level since reunification of East and West Germany, which began in 1990.

The German government recorded a surplus for the fourth straight year — this time of €38.4bn euros. Government spending was much lower than in earlier years.

Theo Ft