German economy rose 3.6 percent in the last year (AP) (12-01-2011)

BERLIN -- The German economy grew on 2010 by a powerful 3.6 percent, its fastest pace since reunification two decades ago, as a rebound in exports was accompanied by strengthening domestic demand.

Germany's swift recovery has made it a standout in the 17-nation eurozone, where smaller economies such as Ireland, Greece and Portugal have been struggling with huge debts.

Investment in machinery and equipment was up 9.4 percent, after a huge decline of 22.6 percent the previous year and household spending rose 0.5 percent, recovering from 2009's 0.2 percent decline.

Imports rose 13 percent, more than making up a 9.4 percent drop the previous year.

Germany was supported by unemployment, which stood at 7.2 percent in December. It was kept in check at the height of the financial crisis as a government-subsidized short-time work plan allowed employers to reduce production without cutting employees, and has fallen over recent months.

According to the DIW economic institute, German companies' specialization in so-called investment goods that draw strong foreign demand helped the country to bounce back, and firms were able to adjust quickly to the upswing because they had kept well-qualified staff.

Germany's budget deficit came in at 3.5 percent of gross domestic product last year -- exceeding the 3 percent limit laid down by European Union rules for the first time in five years as Wednesday’s data showed.

In 2009, Berlin just managed to comply, with a deficit of 3 percent.

Source: AP