Between January and March, the largest economy in Europe, Germany, grew by 0.6 per cent, compared to the previous quarter. Additional investment made by German companies and the construction sector brought growth in the national economy. In the first three months of this year, the gross domestic product in Germany has increased significantly. Germany`s exports, driven by consumers and government spend, also contributed to this economic growth. More information about this matter can be given to you by our law firm in Germany.
Several factors contributed to Germany`s economic growth in Q1. The government policies of increasing employment and rising salaries lead to the largest number of people in work since German reunification in 1990. Immigration to Germany generated an increase of the public expenditure of 4.2%, while private consumption rose by 2.4%. Germany`s economic growth in Q1 was boosted by the exports sector which kept rising by 2.5% year by year. The German authorities aim at reducing the public debt of the country by maintaining low interest rates and reducing financing costs. Due to this economic growth, German companies are increasing their spending on machinery and equipment in order to remain competitive at an international level and promote innovation. Our attorneys in Germany can provide businessmen with more details about the legal framework for foreign investment in this country.
The recent growth of Germany`s economy in Q1 is compared to its European peers. The second largest economy in the Euro zone, France, grew by only 0.3% in the first quarter, slowing from 0.5% in the last quarter of 2016. Italy, the third largest economy in the area predicted a growth rate of 0.2% in Q1, while Spain`s economy powered ahead with a growth rate of 0.8%. German economy expanded in Q1 at twice the pace of the United Kingdom, who finds themselves on the way out form the Euro zone. Financial analysts assume the expansion to continue in 2018, the country`s economic record in the 1970. Investors interested in finding more information regarding this matter are invited to contact our German lawyers.
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