Germany posts 6.2 billion euro surplus in 2016

Germany posts 6.2 billion euro surplus in 2016

1

On 12th of January Germany’s government posted a budget surplus of 6.2 billion euros, explained by a strong economy and low borrowing costs.

Finance Minister Wolfgang Schaeuble said the surplus can be used to pay back existing Government loans.

The government is debating Schauble’s proposal against raising public investment, as defended by the Social Democrat party.

“Money that the citizens have generated should not be hoarded by the Finance Ministry,” said SPD head Sigmar Gabriel. Bavarian conservatives have asked for tax cuts instead.

German gross domestic product grew 1.9% in 2016, with household and government spending growing by 2% and 4.2% respectively. It is currently Europe’s largest economy and has seen economic growth seven years in a row.

About author