The German economy expanded by 2.5% last year, its fastest rate of growth since 2000, according to the federal statistics office Destatis.
In 2005, German GDP had risen by 0.9%. There were two fewer working days in 2006 than in 2005. Adjusted for such calendar effects, growth in 2006 was even higher at 2.7%.
The performance was slightly better than the German government had expected. The official government forecast had been for growth of 2.3% in 2006.
As in previous years, German growth last year continued to be driven by booming exports, but there was also a bigger contribution from domestic demand. Exports jumped by 12.4% in 2006, while private consumption rose by 0.6% and state spending rose by 1.7%.
Germany ran up a public deficit of €46.5 billion, equivalent to 2% of GDP, the first time since 2001 that the German deficit ratio has been lower than 3%.
