German 2010 growth fastest since reunification

 
City A.M. Reporter
Germany's economy rebounded last year at its fastest rate since reunification, official figures have shown.

GDP has bounced back at a rate of 3.6 per cent this year after slumping to its deepest post-war trough last year, preliminary Federal Statistics Office data showed.

In 2009, German GDP shrank by 4.7 per cent, the biggest recorded drop in post-war history. East and West Germany were reunified in October 1990.

An 0.5 per cent increase in private consumption provided little sign of the strong upturn in consumer spending other eurozone economies are watching for to boost demand for their goods by the bloc’s biggest economy.

The economy relied more for growth on traditionally strong corporate investment in 2010, with investment in equipment surging 9.4 per cent and other investment growing 6.4 per cent, the breakdown of the data showed.

"Consumption is still relatively weak," said Gerd Hassel from BHF Bank. "Public consumption however rose very strongly because of the fiscal stimulus programmes. Investments grew strongly, also for equipment. Germany is on a good path."