German growth shrinks during 2008

German exports have suffered from the global economic downturn

Germany's economy grew by just 1.3% in 2008 as the global financial slowdown hit demand for its exports.

The preliminary data comes after growth of 2.5% in 2007 and 3% in 2006.

There was growth of 1.4% in the first quarter of 2008, but then the economy started shrinking and entered recession in the third quarter.

On Tuesday an economic stimulus package worth 50bn euros ($67bn; £45bn) was unveiled by Chancellor Angela Merkel to kick-start Europe's largest economy.

The Federal Statistical Office is not due to release fourth-quarter figures until 13 February.

However the office has confirmed it has given a very preliminary estimate that fourth-quarter GDP will show a contraction of 1.5-2.0% on the third quarter.

"Economic growth in 2008 was solely based on domestic demand," the office said in a statement.

Exports grew 3.9% in 2008, down from 7.5% a year previously, while growth in imports was up to 5.2% from 5%.

Ms Merkel's package includes investments in infrastructure, as well as tax cuts, cuts to state health care contributions and bonuses for families with children.