Surging exports has led to strong growth of the German economy, the biggest in Europe, in the fourth quarter, the Federal Statistics Office said Thursday.

Exports in the fourth quarter rose 6 percent from the third quarter, said the Wiesbaden-based Federal Statistics Office in a report. The economy grew 0.9 percent after 0.8 percent growth in the previous quarter, the office said.

Companies have been increasing spending and hiring in 2006 as a result of booming exports, helping Germany reclaim its role as an economic motor in Europe after years of sluggish growth, analysts say.

However, growth may slow down a bit in 2007 in view of the dropping foreign demand for German goods and a rise of value-added tax which could hurt consumer spending.

The German economy, which accounts for about a third of the euro-region economy, grew 2.7 percent in 2006.

Source: Xinhua