Germany's economy barely grew in the fourth quarter of last year as imports rose faster than exports and consumer spending remained sluggish.
Gross domestic product in Europe's biggest economy expanded by 0.2 per cent from the previous quarter, the Federal Statistics Office said, confirming an estimate published earlier this month. Compared with the fourth quarter of 2002, GDP also grew 0.2 per cent.
German economy minister Mr Wolfgang Clement confirmed the government's growth forecast for this year of between 1.5 per cent and 2 per cent, a prediction that is broadly in line with research institutes and private banks.
"Things are taking off again in Europe," he said at a news conference in Berlin. "After the stagnation of last year, growth signals are pointing upwards."
However, Mr Bernd Weidensteiner, an economist at DZ Bank in Frankfurt, said Germany will only enjoy a sustained upswing when consumers "open their wallets" and predicted "moderate growth" in the first half of this year
Exports increased at a rate of 0.3 per cent from the third quarter, slower than a gain in imports of 2.7 per cent. Private consumption fell by 0.4 per cent quarter-on-quarter and government consumption dropped 0.2 per cent, the office said.
However, gross capital investment grew by 1.7 per cent over the quarter.
The office also confirmed earlier data showing the economy shrank 0.1 per cent in 2003 compared with the previous year, its first full-year contraction since 1993.