Provisional data available from the National Statistics office indicated that German economy grew by 3.6% in 2010, in stark contrast to many European Economies, which are either growing slowly or have stagnated.
Germany’s economy grew the fastest in 20 years as export recovered and domestic demand surged. The economy had contracted by 4.7 percent in 2009, the worst for Europe’s biggest economy since World War II.
German’s exports had shrunk by 14.3 percent in 2009. However, the world’s biggest exporter made a smart recovery and exports grew by 14.2 percent in 2010.
Commending the economy’s turnaround, the Federal Bureau of Statistics said: “What was striking in 2010 was the fact that economic growth was not only based on foreign trade, but also on domestic demand”, indicating the growth is sustainable.
Capital expenditure rose sharply for the year with investment in machinery and equipment registering a 9.4 percent growth after falling by 22.6 percent in 2009.
Household expenses were up marginally by 0.5 percent after falling by 0.2 percent in 2009. Imports grew by an impressive 13 percent, reversing 2009’s drop of 9.4 percent.
Germany has been the star performer of Europe and leading the trading bloc out of recession. The budget deficit was recorded a manageable 3.5 percent, much lower than the ‘peripheral’ states of Greece, Spain and Portugal, but higher than the 3 percent limit set by the European Union.