SHANGHAI, March 1, 2018 (Newswire.com) - Hamilton Crawford economists say official data released by Germany's statistics office revealed that the country achieved its highest yearly surplus in almost three decades. The figures followed reports of all-time low unemployment rates and ultra-low borrowing costs.
According to Hamilton Crawford economists, last year Germany logged a budget surplus of €36.6 billion. The figure came after the National Statistics Office (Destatis) revised an earlier estimate of €38.4 billion.
The data marked the fourth consecutive yearly surplus for Europe's biggest economy. For Germany, adhering to the terms set out in the Maastricht Treaty is no longer problematic. The treaty dictates that the government's fresh borrowing must not be more than 3 percent of GDP.
Hamilton Crawford economists believe that this fourth consecutive positive result is again due to full order books and all-time high employment combined with the European Central Bank's monetary easing and low-interest rate policies.
The National Statistics Office verified that Germany's economy expanded by 0.6 percent in the period from October to December last year. Hamilton Crawford economists believe the growth was largely due to a significant 2.7 percent rise in exports. Imports also increased by 2 percent in the final quarter of 2017.
For the whole of last year, the German economy grew by 2.2 percent. This was the biggest yearly growth reported in seven years.
However, with business confidence dropping slightly due to political uncertainty, Hamilton Crawford economists are unsure as to whether or not Germany can maintain the momentum of last year's growth in 2018.
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Source: Hamilton Crawford