Germany Posts Budget Surplus Despite Slumping Growth
German state coffers are bulging with cash as councils and social security logged their biggest surpluses in more than a decade. The achievement is doubtful, however, as it came at the expense of investment and growth.
Germany’s statistics office, Destatis, reported Monday, that Europe’s biggest economy posted a budget surplus of 16.1 billion euros ($21.1 billion) in the fist half of 2014.
Destatis data showed that the federal government alone accumulated a surplus of 4 billion euros in the first six months of the year - the first time it has not registered a deficit in the period since 1991.
The overall surplus, which also includes the budgets of regional and local governments as well as the social security system, amounted to 1.1 percent of the country’s gross domestic product (GDP).