Germany’s recent economic data showed higher than expected demand for domestic industrial goods, and therefore recorded strong industrial orders in the month of August. According to the Economy Ministry factories will contribute to growth in Europe’s economic powerhouse in coming months.
The data indicates a positive development in the German economy, after weak performance in previous month raised concerns of a possible stagnation.
Chancellor Angela Merkel commented on the new economic data, saying that the good shape of the economy and rising employment will allow some fiscal flexibility without the government taking on new debt, and slightly lower tax rates.
“The good budgetary situation is having a positive effect. We will be able to bring about small tax relief, which will amount to 6 billion euros for 2017 and 2018… I think solid fiscal policy is important also because of the demographic changes we’re facing. The ‘Schwarze Null’ is not a fetish of uninspired people as some critics suggest, but it is the statement that we don’t want to burden the next generation with even more new debt,” Merkel said.