German unemployment fell to a six-year low last month, more than double the fall economists had predicted, underlying the strength of Europe’s largest economy ahead of what could be a challenging year.

In its monthly report, published on Thursday, the Federal Labour Agency said seasonally-adjusted unemployment had dropped by 78,000 to 3.4m, almost twice the average monthly fall in the past year. Altogether, more than half-a-million people came off jobless benefits in the past year.