Financial pickup
January 12, 2011
Germany continues to be the standout achiever among the 17 countries that share the euro currency, with official data showing Wednesday that the German economy grew by a strong 3.6 percent last year.
The GDP growth figures - Germany's most powerful since reunification in 1990 - come on the back of a surge in export activity and signs of improvements in domestic demand. Germany is the world's second-biggest exporter after China.
The preliminary 2010 results announced by the Federal Statistics Office compare with a 4.7-percent contraction in the economy in 2009 during Germany's worst post-war recession.
"We grew by twice the European Union average," Economy Minister Rainer Bruederle said in a statement.
Bruederle also noted that the employment rate in Germany has climbed to an all-time high of 40.5 million people, reducing the need for some public spending.
Officials have also launched an austerity plan aimed at creating savings of 80 billion euros ($104 billion) by 2014.
Other European economies still struggling
Meanwhile, the public deficit also rose, to 3.5 percent of output, in part owing to strong stimulus measures taken to battle the recession.
The positive results for Germany come as a number of other European economies are still struggling to deal with the knock-on effects of the global financial crisis.
Portugal on Wednesday is due to put up to 1.25 billion euros worth of four and 10-year bonds up for sale in a bid to raise funds to aid its debt-laden economy. There are fears that Portugal, and neighboring economy Spain, could be next in line for a bailout.
Greece and Ireland are also laboring under huge public deficits.
Author: Darren Mara (AFP, AP)
Editor: Martin Kuebler