The German economy got off to a flying start this year, growing by more than twice the expected rate in the first three months of the year.
GDP in Europe's largest economy grew by 1.5% in the first quarter compared to the final three months of 2007, more than twice the 0.7% forecast by economists. It was the highest rate of growth in over 12 years and was described by some economists as 'simply sensational'.
'Seen over the course of the whole of the first quarter the economic upswing of last year continued unabated,' the statistics office.
'Even with increasing dampening effects the German economy proved itself to be very robust,' it said, with growth driven both by domestic demand and by exports.
Data since the beginning of the year have suggested that the German economy was holding up surprisingly well against the strong euro, rising energy and food prices and a slowing of the US economy. Recent indicators have suggested however that this may not last.
Meanwhile, German inflation fell to 2.4% in April from 3.1% in March, but remains above the European Central Bank's target of just below 2%, data confirmed today.
Final figures for the annual inflation rate released by the statistics office confirmed a preliminary estimate based on a sample of six German states issued on April 28.
A 0.2% moderation from March was helped by a strong fall in holiday and hotel prices due to Easter falling this year in March, whereas in 2007 the holiday period was in April, the statistics office said in a statement.
The main factors driving the inflation rate in Germany remain, though, rising energy and food prices. Petrol for example cost 8.8% more than in April 2007, and light heating oil was 38.9% more expensive. Electricity prices were up 7.3% and gas was 3.6% pricier.
Food and non-alcoholic drinks were 7.1% more expensive in April than a year ago. Eggs were 24% more expensive, milk 31%, fruit 9.7% and bread and other cereal products 8.8% higher. Vegetables were 5.5% cheaper, however.
