The German economy, Europe's biggest, grew by a record 3.6% last year, provisional figures released by its national statistics office showed.
The economy shrank by 4.7% in 2009 during the country's worst post-war recession, before rebounding to post the strongest growth since its reunification in late 1990s.
Separate provisional figures from the Destatis statistics office showed that Germany's public deficit widened to 3.5% of output last year.
The country ended the year with a deficit of €88.6 billion, surpassing the EU ceiling of 3% of gross domestic product. In 2009, Germany had posted a public deficit right at 3% of GDP, following a slight surplus the previous year.
In October, German officials said they were confident of getting back below the EU threshold this year, but did not give a forecast figure.
The country has benefited from a rebound in global trade that has raised tax revenues while falling unemployment has reduced the need for some public spending. Officials have also launched an austerity plan aimed at realising savings of €80 billion by 2014.
