German growth grinds to halt at end of 2011 The driving force behind growth was domestic demand, with consumer spending up 1.5pc, the strongest increase in five years. In addition, investment was also strong, with investment in equipment rising by 8.3pc. Foreign trade also contributed to growth, adding 0.8 percentage points to the overall GDP figure, with German exports rising 8.2pc in 2011 and imports up by 7.2pc, Destatis calculated. At 3pc, German growth is double both the anticipated average for both the European Union and the eurozone, as well as for the United States. "According to current projections, Germany is among the top performing economies in Europe in 2011, with stronger GDP growth seen only in Sweden, Poland, Finland and the Baltic states," Egeler said. In an initial response to the data, the Berlin-based think-tank DIW said it was now projecting growth of only 0.6pc for the current year. "After expanding strongly for the past two years, growth will be much lower this year in the wake of the eurozone crisis," said DIW economics chief Ferdinand Fichtner. "Both exports and domestic demand will be temporarily hit," predicted another DIW economist Simon Junker. "The heavily export-orientated German economy will not be able to escape the global slowdown," he said. "Nevertheless, if policymakers succeed in curbing the crisis quickly and credibly, then investment and consumer spending will pick up again sharply in the summer," and exports would also recover, Fichtner predicted. "German companies are competitive and well-positioned in the fast-growing developing countries," Fichtner said. "And the situation on the labour market, too, should not deteriorate substantially if the fallout from the crisis does not prove too long-lasting," he said.