German growth shrinks during 2008

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.

RELATED INTERNET LINKS
German financial ministry
The BBC is not responsible for the content of external internet sites