Berlin  - A sharp slump in German exports in the final three months of last year helped to send Europe's biggest economy deep into recession, data released Wednesday showed.

Exports tumbled by 7.3 per cent quarter on quarter in the last three months of the year with company investment in plant and machinery falling by 4.9 per cent, the nation's statistics office said. Consumption slipped by 0.1 per cent.

Announcing the figures, the statistics office confirmed German economic growth contracted by 2.1 per cent in the fourth quarter.

This represented the third quarter in a row that German growth has sunk.

As the world's biggest exporter, Germany is particularly vulnerable to a slowing world economy. The International Monetary Fund expects the German economy to shrink by 2.5 per cent in 2009.

A key survey released Tuesday showed German business confidence declining this month to its lowest level in 18 years. (dpa)