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LONDON (CNNfn) - German first-quarter gross domestic product increased 0.7 percent from the previous three-month period, as expected, helped by demand for exports, the Federal Statistics Office said on Tuesday.
The German economy, Europe's biggest, expanded by 3.3 percent in the first quarter of 2000 compared to the same period a year ago, the strongest annual rate of growth since the first quarter of 1998.
The quarter-over-quarter growth rate matched the 0.7 percent pace recorded in the three months ended Dec. 31, aided by a decline in the euro that has made exports cheaper. Economists now predict full-year growth of more than 3 percent.
"It's a very good start to the year 2000 and clearly indicates the upswing is intact and growth is accelerating," said Manuela Preuschl, an economist at Deutsche Bank in Frankfurt.
The Organization for Economic Cooperation and Development Tuesday raised its forecast for German economic growth, predicting GDP would rise 2.9 percent this year and 3 percent in 2001, as exports remain strong and tax cuts boost domestic demand.
In the first quarter, exports grew 15.3 percent from a year earlier while imports rose 11.9 percent. Gross investment in plant and equipment increased 5.7 percent. The pace of growth in private consumption weakened to 0.9 from a year earlier, compared with 2.2 percent in the fourth quarter of 1999.
--from staff and wire reports
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