Reflecting the buoyant trend in Europe's largest economy, German gross domestic product grew on an adjusted basis by 2.3% from 1999's first quarter and by 0.7% from the fourth quarter of last year.

The increase was driven mainly by higher investment in machinery and equipment, government spending, and increased exports – although consumption was weaker than expected. The Federal Government predicts growth of 2.75% this year, up from 1.5% last year.

German exports grew by 13% in the first quarter from a year earlier, the second-highest rate since 1990.

News source: Wall Street Journal