Public finances back in the black by €8.5 billion

Europe’s largest economy ran up a government surplus of €8.5 billion in the first six months, equivalent to 0.6 percent of output, the national statistics office Destatis calculated.

Destatis said in a statement: “The budgets of central government, state governments, local government and social security funds benefited from a generally good employment situation and a stable economic development in the first half of 2013 compared with other European countries.”

At the same time, the statisticians confirmed a preliminary estimate that Germany’s economy expanded by 0.7 percent in the second quarter, powered by robust consumer and public spending, as well rising investment.

Private consumption grew by 0.5 percent, public spending was up 0.6 percent

and investment rose by 0.9 percent. This was partly due to “weather-related catch-up effects following the unusually long and cold winter,” the statistics office said.

In more good news for the economy, 2.2 percent more goods and services were exported in the second quarter and imports were up by two percent.

AFP/tsb