The German economy – the biggest one in Europe – shrank in the fourth quarter of 2011, but this happened in less than expected. The reason for this has been more investment in the construction sector. This according to official data from national statistical office of the country – Destatis, published earlier today. The Gross domestic product in Germany fell by 0.2% yoy in the fourth quarter after seasonal adjustments are applied. On an annual basis rose by 2.0%. The data were better than analysts’ expectations, when asked by Dow Jones, which provided the indicator to shrink by 0.3% qoq and increased by 1.8% annually. Investments in the construction sector were the main support of growth indicators on a quarterly basis. Domestic demand, which was the main driver of the economy in previous periods, has now declined slightly and net exports added by Destatis. The data for the third quarter of 2011 were revised upward to an increase of 0.6% quarterly and 2.7% yoy. Earlier estimates pointed to growth of 0.5% and 2.6%. Throughout 2011 the German economy grew by 3.1%, with seasonal adjustments applied to 3.6% in 2010 Without a seasonally adjusted real GDP grew by 3.0% in 2011 to 3.7% for 2010.