Consumers drive speedier German growth

Consumers are helping to drive German growth higher.

Figures out Tuesday (August 24) show the country's economy expanding faster than initially estimated in the second quarter.

GDP grew an adjusted 1.6%, slightly up on the initial figure, and a big upturn from the 2% contraction in the previous period.

Private consumption was a big driver.

Germans spent more, and saved less, as shops, bars and restaurants reopened.

State spending also grew, but so did deficits.

Over the first half of the year public finances were in the red by almost 81 billion euros - or about $95 billion.

That equated to a public sector deficit of 4.7% of GDP - the largest in 26 years.

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