MercoPress. South Atlantic News Agency

Germany top of the class in budget surplus and sustained economic growth

Budget surplus 0.6% of GDP in first half, and 0.7% growth in second quarter

Official figures show Germany's budget surplus rose to 0.6% of GDP in the first half of the year, boosted by higher tax income. The government pulled in 321.4bn Euros in taxes, 3.8% more than a year ago thanks to its steady employment rate. The German Federal Statistical Office, Destatis, said the surplus was 8.5bn Euros in the period between January and June.

The figure was higher than the surplus for the same period a year ago. For the whole of last year, Germany's budget surplus was 0.2% of GDP.

Budget surpluses are rare among European countries. Many have deficits of more than 3% of GDP, despite an European Union limit of that level.

In a statement, Destatis said: “The budgets of central government, state governments, local government and social security funds benefited from a generally good employment situation and a stable economic development in the first half of 2013 compared with other European countries.”

The agency also confirmed a preliminary estimate of German GDP of 0.7% growth in the second quarter, giving an annual growth rate of 0.9%. It said this was partly thanks to “weather-related catch-up effects following the unusually long and cold winter”.