Private consumption, construction investment propel German Q1 GDP

Berlin

STRONG private consumption and higher construction investment drove a 0.7 per cent rise in German gross domestic product in the first quarter, more than offsetting the effects of weaker foreign trade, data showed on Tuesday.

The German government's increased spending on refugees and the European Central Bank's ultra-low interest rates were among factors singled out by analysts to explain the biggest quarterly expansion in two years for Europe's largest economy.