Germany says economic growth helped it cut debt last year

AP News
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Posted: Mar 31, 2016 8:01 AM

BERLIN (AP) — Germany's central bank says healthy economic growth helped the country reduce its debt by 24 billion euros ($27.1 billion) last year.

The Bundesbank said Thursday that the reduction trimmed Germany's debt pile to 2.153 trillion euros, or 71.2 percent of gross domestic product — the third consecutive fall.

That compares with 74.7 percent the previous year and 81 percent in 2010, though it's still above the 60 percent limit eurozone countries are supposed to observe.

Germany's economy, Europe's biggest, grew by 1.7 percent last year. The Bundesbank says economic growth was responsible for most of the debt reduction.

The economy's solid performance has boosted the government's tax income and allowed it to run a surplus at a time when other countries in Europe have sizeable deficits.