BERLIN, March 14 (Xinhua) -- Household spending in Germany rose at the fastest pace in 20 years in 2017, according to official figures published Wednesday by the Federal Statistical Office.
According to the Wiesbaden-based government statisticians, the total volume of private consumption reached 1.64 billion euros (2.03 billion U.S. dollars) last year. The figure marked an increase of 3.6 percent compared to 2016 and the fastest growth rate recorded since 1994.
The Federal Statistical Office attributed the development to Germany's strong economic momentum, low unemployment and the current low interest rate environment. Adjusting for inflation, German consumption rose by 1.9 percent in 2017.
In particular, Germans spent more on cars (8.6 percent), fuel (7.8 percent), attire (5.9 percent) and food (3.8 percent). By contrast, living costs rose by a relatively modest 2.7 percent.
Because growth in disposable incomes outpaced spending, the average savings rate in Germany still increased slightly to 9.9 percent in 2017 from 9.7 percent in 2016. Nevertheless, the study emphasized that higher private consumption had made a significant contribution to overall gross domestic product (GDP) growth in 2017.