Higher exports, state spending, propel German GDP growth

Higher exports, state spending and private consumption drove a 0.4 per cent expansion in German gross domestic product in the second quarter of 2016, more than offsetting weaker investment by companies in Europe’s biggest economy, new data show.

Confirming a preliminary reading for growth, the Federal Statistics Office said net foreign added 0.6 percentage points to GDP as exports rose 1.2 per cent on the quarter and imports inched down 0.1 per cent.

State spending rose 0.6 per cent on the quarter, contributing 0.1 percentage points to growth as authorities spend more to accommodate and integrate a record influx of migrants.

Consumer spending edged up 0.2 per cent on the quarter, adding 0.1 percentage points to GDP in the three months to June. Investment in plant and equipment fell 2.1 per cent on the quarter, subtracting 0.4 percentage points from overall economic growth. – (Reuters)