The German economy expanded by 0.6% in the first quarter of 2017 according to the Federal Statistical Office. This was slightly below expectations but still well above the 0.4% increase in the fourth quarter of 2016 and the strongest increase since the first quarter of 2016. This would suggest annual GDP growth of 1.7%. The increase in GDP resulted from increases in both domestic and foreign demand. Domestically, there was a notable increase in construction and in machinery and equipment. Household and government spending also rose. Exports increased faster than imports. This first report for 2017 indicates growth that is strong and well-balanced that is likely to continue throughout the year.