German business bankruptcies fell slightly last year as the country's economy, Europe's biggest, emerged from three years of stagnation, government data showed Friday. The government statistical agency said 39,213 businesses failed last year _ 0.3 percent less than in 2003. It was the first drop since 1999. In December, 3,243 companies filed for bankruptcy, 3.4 percent more than in the same month a year earlier. The German economy grew by 1.6 percent last year after three consecutive years of near-zero growth, powered by stronger exports. But domestic spending by consumers has failed to recover _ causing an unexpected 0.2 percent decline in gross domestic product in the last quarter of 2004. That performance this week prompted the head of the government's council of economic advisers to lower his 2005 growth forecast to 1 percent from 1.4 percent.
