BERLIN, Feb. 27 -- Germany's public deficit slumped dramatically to 1 percent of gross domestic product (GDP) last year from 4.3 percent in 2010, enabling the country to achieve the 3-percent EU limit two years earlier than scheduled, official data showed Friday.
The Wiesbaden-based Federal Statistic Office confirmed its preliminary calculation that Germany public deficit dropped significantly to 25.3 billion euros (33.8 billion dollars) last year from 105.9 billion euros in 2010.
Against the total GDP of 2.57 trillion euros, the country's deficit ratio falls back to 1.0 percent in 2011, far below the 3-percent budget deficit threshold required for eurozone nations in the bloc's Stability and Growth Pact. Berlin had pledged to bring its deficit below the limit by 2013.
The last time Germany put its deficit ratio under 3 percent was in 2008, when it has a 0.1 percent deficit ratio from a surplus of 0.2 percent in 2007.
In 2009, the deficit soared to 3.2 percent as the government took out multi-billion-euro stimulus package to curb the global financial crisis and economic recession. While the German economy recovered fast and went back to growth in 2010, the deficit ratio climbed to 4.3 percent in 2010.
Powered by strong exports and sustained domestic demands, the German economy boosted 3 percent last year following a 3.6-percent growth in 2010, which substantially expanded tax revenues and contributed to the deficit shrinking, experts said.
The German government forecast that the country's economy would expand 0.7 percent in 2012, slower than last year but still much better than most of its European neighbors.