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German GDP grew 1.9% in 2016, strongest rate in 5 years

Economy is benefiting from rising private consumption and increased state spending on refugees

Merkel plays for time as Brexit moves into gear

Reuters Berlin
The German economy expanded by 1.9% in 2016, the strongest rate in five years and an improvement on the previous year, a preliminary estimate from the Federal Statistics Office showed on Thursday.

Europe's largest economy is benefiting from rising private consumption and increased state spending on refugees, compensating for a weaker contribution from trade amid sluggish demand from major trading partners and emerging markets.

Economists polled by Reuters had expected growth in gross domestic product (GDP) of 1.8% for 2016 after an expansion rate of 1.7% in the previous year.

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First Published: Jan 12 2017 | 3:52 PM IST

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