German Economy Increases by 3.6 Percent in 2010

January 12, 2011 Updated: January 12, 2011

[xtypo_dropcap]T[/xtypo_dropcap]he German economy grew significantly by a record 3.6 percent in 2010, indicated provisional figures published by the national statistics office on Wednesday, according to German news agency The Local.

In 2009, Europe’s biggest economy faced its worst recession since World War II, when the economy contracted by 4.7 percent. Last year’s rebound marks the strongest growth of the country’s Gross Domestic Product (GDP) since German reunification in 1990.

"We grew by twice the European Union average," said German Economics Minister Rainer Brüderle in a statement, according to The Local.

After China, Germany is the biggest exporter in the world. It's exports had decreased by 14.3 percent in 2009, but increasd by 14.2 percent in 2010.

Economists indicated that a striking development in last year’s economic growth is stronger domestic demand, wherein private consumption and corporate investment are playing a role.

Machinery and equipment investment went up by 9.4 percent, while in 2009 it was reduced by 22.6 percent, according to BBC.

However, provisional data indicated that Germany’s budget deficit expanded to 3.5 percent of GDP last year, surpassing the 3.0 percent limit set by the EU.