taxes and social contributions bestowed the German government in the first half 2016, a record surplus of 18.5 billion euros. The public coffers benefited from the stable economy and the good situation on the labor market.
In addition, the German tax authorities benefited from the low interest rate policy of the European Central Bank (ECB). He can borrow money cheaper than before. In terms of total economic output, the increase was 1.2 percent, the Federal Statistics Office in Wiesbaden announced.
Cheap rate policy
mid-June was the first time in the history of the Federal Republic, the ten-year Bunds slipped even into negative territory. The state was able to take long-term debt and for cash money, instead of paying interest.
Germany is once again far from the debt ceiling of the euro stability pact. Allowed is a maximum of a deficit of 3.0 percent of economic output. Last missed Germany this brand in 2010 with a decline of 4.2 percent.
growth especially in the first quarter
In the second quarter, the German economy continued to grow, slowed after strong start however, their pace somewhat. From April to June, gross domestic product, driven mainly by foreign trade compared to the beginning of the year by 0.4 percent, as the statisticians confirmed first calculations. Exports rose by 1.2 percent, while imports decreased against it easily.
Construction brakes
Also the expenditure, inter alia for the accommodation and integration of hundreds of thousands refugees and consumer spending consumer contributed to the growth. Declining investment in the construction and the companies in equipment such as machinery, however slowed down the development.
Earlier this year, the German economy still grew strongly by 0.7 percent compared to the last quarter of 2015. The construction sector benefited from the mild winter, projects have been brought forward. This effect was accounted for in the second quarter.
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