Merkel’s poll boost as Germany powers to fastest growth in three years

German Chancellor Angela Merkel’s electoral chances were further buttressed on Tuesday amid more strong growth for the eurozone’s economic powerhouse.

The economy, which accounts for nearly a quarter of the eurozone overall, is growing at its fastest annual pace for three years, 2.1%, after a 0.6% expansion between April and June.

Merkel (pictured) is seeking a fourth term in office next month, buoyed by a healthy lead over Social Democratic Party challenger Martin Schulz.

The economy’s latest advance was driven by strong household and government spending as well as business investment, although trade dragged as import growth overtook exports.

Germany, however, has drawn fire over its big government surplus, which it is under pressure to cut to help the rest of the deficit countries in the eurozone.

Its exporters have also benefited from currency union and a weaker euro.

ING Bank’s Carsten Brzeski said: “the German economy is still thriving and currently the biggest risk is probably policy complacency.”