The German economy stagnated in the final quarter of 2005, casting doubt on the durability of its nascent economic recovery. Economic output was flat in the three months to 31 December, official data showed, after positive growth in each of the previous three quarters. On an annualised basis, output was 1% higher than in 2004's final quarter.Recent economic indicators have been mixed, with unemployment rising but exports performing strongly. The jobless total rose back above the five million mark in January, while retail sales fell in December. On the other hand, Germany's trade surplus rose to a record level last year - and business confidence is at a five year high.
Europe's largest economy slowed towards the end of 2005 after seeing growth of 0.6%, 0.3% and 0.6% in the first three quarters of 2005. "The economic growth of the first three quarters did not continue towards the end of 2005," Germany's Federal Statistics Office said in a statement.