German economy grows by 1.5 percent in first quarter

13th May 2011, Comments 0 comments

The German economy grew by a quarterly 1.5 percent in the first three months of the year according to seasonally corrected figures released on Friday, bringing Europe's biggest economy back to pre-crisis levels.

The solid result was in large part the result of strong domestic demand, the the national statistics office data showed, good news for Germany's normally export oriented economy.

It also represented a catch-up effect from the fourth quarter of 2010, which saw modest growth of 0.4 percent owing to poor weather.

In the three months from January to the end of March, "a positive contribution was made mainly by the domestic economy," a statement issued by the Destatis office said.

"The pre-crisis level of early 2008 has been exceeded already now," it added.

On a 12-month comparison, the price-adjusted gross domestic product gained a hefty 5.2 percent in the first quarter, which meant GDP "rose more sharply than ever since German unification," the statement said.

When adjusted for calendar effects, the annualised gain was a slightly more modest 4.9 percent.

© 2011 AFP

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