FRANKFURT, Jan 14 - Germany's gross domestic product shrank by 0.1 percent in 2003, the first full year of decline since 1993 when Europe's biggest economy contracted 1.1 percent, a source aware of official data told on Wednesday. "It shrank slightly," the source said, adding that the data due to be released on Thursday would show a fall of 0.1 percent. In 2002, GDP grew 0.2 percent. The 2003 figure is broadly in line with economists' expectations for flat GDP in 2003, the weakest year in three successive years of stagnation.
The Federal Statistics Office is due to publish its report at 0800 GMT on Thursday and may give an indication of developments in the fourth quarter. Economists have said recent figures indicate that growth accelerated in the final quarter of 2003. In the October-December period, GDP probably increased by 0.5 percent over the previous quarter, according to a survey of 11 economists published on Tuesday. Germany has benefited in recent months as a global economic upswing boosted demand for German exports even as the euro strengthened to a series of record highs against the dollar. Industrial production, about a quarter of the economy, increased for a second straight month in November and new orders rose for a third month, suggesting output will expand further in the months ahead. "If the euro does not continue to appreciate significantly, then the upswing should gather some momentum," said Joerg Kraemer, chief strategist at Invesco Asset Management in Frankfurt on Tuesday.//