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Germany in rude health as falls in unemployment meet sky high consumer confidence

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Germany in rude health as falls in unemployment meet sky high consumer confidence

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German unemployment has fallen to its lowest-level in more than two decades to 2.8 million.

While those around them struggle the number of German jobless has decreased by 20,000 in February.

The current rate is running at 6.5 percent and remains the lowest since reunification in 1991.

Add to that consumer confidence is running at a 13-year high.

Put simply the strength of the labour market will boost domestic consumption and act as a driver for further growth.

Rolf Burkl is a German consumer analyst: “This increased optimism has its roots above all in the conditions in Germany itself – especially the low inflation. In January, the inflation rate was negative for the first time since 2009. This means that in real terms there are considerable gains in income.”

Other contributing factors are low oil prices freeing up money from domestic budgets and a wage deal won by Germany’s largest union, which will benefit 3.7 million workers.