German growth buoyed by demand, spending on refugees

Berlin

A RISE in German private consumption and higher state spending on refugees more than compensated for weakness in foreign trade, helping Europe's biggest economy to grow at a modest, albeit slower pace in the third quarter, data showed on Tuesday. Record-high employment, rising wages and nearly stable prices are boosting household spending in Germany while cheaper petrol is freeing up some cash for other purchases.

At the same time, record numbers of people, fleeing war in the Middle East, are arriving in Germany. The federal government and states are spending billions of euros on housing the new arrivals, integrating them and finding them jobs.