Germany's economy contracted by 0.2 percent in the fourth quarter on sagging exports and private consumption, data showed on Friday, but analysts said they expected Europe's growth engine to pick up steam again this year.
Investments, particularly in construction, were a bright spot.
The seasonally adjusted data from the Statistics Office confirmed an earlier flash estimate and showed trade and private consumption, respectively, subtracting 0.3 and 0.1 percentage points from Gross Domestic Product.
Exports in particular dropped 0.8 percent in the fourth quarter after growing 2.6 percent in the previous three months.
Economists put this down to weaker demand from the euro zone, which is mired in a sovereign debt crisis.