The German economy produced its strongest growth in five years in 2016, thanks to a surge in consumer spending and government support for refugees, official data revealed on Thursday.
German gross domestic product (GDP), the world's third largest one after the U.S. and China, rose 1.9 percent year on year in 2016, according to the Federal Statistical Office (Destatis).
In 2015 and 2014, the German economy grew by 1.7 percent and 1.6 percent, respectively.
Destatis attributed the solid growth to the surge of consumer spending and government support for refugees.
German household consumption rose by 2.0 percent last year, and contributed 1.1-percentage point to total GDP, Destatis said.
The increase in government consumption was markedly larger, reaching a growth rate of 4.2 percent.
The large number of people seeking refuge in Germany resulted in considerable costs and was among the drivers of the large increase in public expenditure, according to Destatis.
In the meantime, Germany recorded its highest employment since 1991 with a total of 43.5 million employees, contributing to the economic growth. In addition, labor productivity in 2016 increased by 1.2 percent.
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