With the first quarter exports and investments in Germany nose-diving to their lowest ever, the German economy has reported its biggest retrenchment since reunification. However, a somewhat strong consumer spending slightly eased out the situation for the Europe's largest economy's "deepest slump" on record!

The Federal Statistics Office in Wiesbaden confirmed the preliminary estimates on Tuesday, noting that the country's quarter-over-quarter GDP - gross domestic product - for the January-March quarter shriveled 3.8 percent; while the year-over-year figures shrank 6.7 percent.

The reported quarterly and annual drops in GDP are the biggest since the 1990 German reunification. A detailed analysis of the figures reveals that record decreases in exports and investment played their role in pulling down the economy.

The statistics office said that exports in the first quarter fell 9.7 percent from the earlier quarter figures, and company investment plunged 7.9 percent. However, the only saving grace was a 0.5 percent increase in consumer spending, despite a 0.9 percent fall in household incomes.

With the German government anticipating a 6 percent contraction in the economy this year, economist Carsten Brzeski, at ING Groep NV in Brussels, said: "Recent indicators give hope that the worst is behind us. The German economy should stabilize in the coming quarters, backed by the ECB's aggressive monetary easing and the government's stimulus package."

(via TopNews.Europe Contributed by Mark Menell)