Wiesbaden, Germany  - German economic growth surged 1.5 per cent in the first quarter of 2008 compared to the final three months of last year, the Federal Statistics Office said Thursday.

The increase was the highest in 12 years and double what analysts predicted.

Price-adjusted gross domestic product (GDP) was up 1.8 per cent on a year-to-year basis in the first quarter. Calendar adjusted, the rate was 2.6 per cent, the statistics office said.

Analysts said the figures underscored a robust economy carried by a firm domestic demand and healthy exports.

In the final quarter of 2007, economic growth was 0.3 per cent from the previous quarter and expanded 1.6 per cent year-on-year. (dpa)