BERLIN (AP) -- The German economy, Europe's largest, shrank less than expected in the last quarter of 2011 and was still able to post 3 percent growth on the year overall, the Federal Statistical Office reported Wednesday.
Gross domestic product dropped 0.2 percent in the fourth quarter, according to figures adjusted for price, seasonal and calendar variations. That was less than the 0.25 percent or more that had been expected based on preliminary numbers.
The fourth quarter GDP was also 2 percent higher than the same quarter the year before, and the Statistical Office revised its third quarter figure up to 0.6 percent, quarter on quarter, from 0.5 percent.
Carsten Brzeski, an economist with ING Global Research, said the fourth quarter slide was no cause for greater concern and the underlying factors supporting the German economy were still strong.
"The first economic contraction since the end of the recession turned out to be weaker than expected, confirming that the German economy only took a growth pause and is not approaching a new recession," he said in a research note. "The big unknown for the German economy remains the sovereign debt crisis."
The Economy Ministry in January cut the country's 2012 growth forecast from 1 percent to 0.7 percent — its second reduction in three months. As recently as October the prediction was 1.8 percent.
Still, Germany is expected to avoid a recession — defined as two consecutive quarters of negative growth — with 0.1 percent growth predicted for the first quarter of 2012.
The World Bank is forecasting that the eurozone economy as a whole will contract by 0.3 percent this year. It sees the United States growing by 2.2 percent, Japan by 1.9 percent and China by 8.4 percent.
Germany's 2011 growth of 3 percent followed a growth spurt of 3.7 percent in 2010 after a deep recession the previous year.
That contrasted with the performance of many of its partners in the eurozone, which have seen their economies barely grow or shrink amid debt troubles and tough austerity measures.
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