GERMANY'S economy contracted 5 percent in 2009 amid the global economic downturn, by far its worst performance since World War II, official data showed yesterday.

The figure published by the German Federal Statistical Office was in line with government predictions but slightly worse than the 4.8 percent contraction predicted by analysts.

"What was striking in 2009 is that both exports and capital formation in machinery and equipment slumped heavily," the office said. "Foreign trade, which in previous years had been a major driving force for growth in the German economy, slowed down economic development in 2009."

Exports were down a price-adjusted 14.7 percent, while imports were down 8.9 percent, the office said.

The worst postwar performance to date was a 0.9 percent decline in West Germany's gross domestic product in 1975. The worst since German reunification was a 0.8 percent fall in 1993.

"With minus 5 percent, real GDP plunged at the fastest pace ever since World War II," said UniCredit economist Andreas Rees. "One has to go back to the 1930s during the Great Depression to find comparably horrible figures. In 1932, economic activity was down 4.9 percent; in the previous year, it had even been minus 10.9 percent."

The statistics office did not give fourth-quarter figures, saying that not all data had been published, but suggested GDP may have stagnated in the quarter, Rees noted.

"If GDP really treads water at year-end 2009, this would be a very negative surprise," he said. "It is absolutely not backed by upbeat sentiment indicators. Furthermore the so-far released hard data suggest a friendlier picture."

Germany's export-dependent economy technically emerged from deep recession in the second quarter of 2009, but the country's companies and workers still face slack demand and rising unemployment.

Throughout 2009, an average of 3.423 million Germans were out of work, an increase of 155,000 as compared with 2008, for a yearly unemployment rate of 8.2 percent.

The government is predicting growth of 1.2 percent this year.