The German economy contracted in the final quarter of last year as the Eurozone crisis took its toll.
But Deutsche Welle reports Europe's biggest economy still managed to post modest growth of 0.7% over the full 12 months.
Destatis head statistician Norbert Raeth said economic activity "slowed considerably" in the second half of the year, and particularly in the final quarter.
The BBC reports the service sector of the economy expanded, but industry and construction contracted.
Last month, the Bundesbank cut its growth forecast for this year to 0.4% and warned that the economy may have contracted in the final three months of 2012, and may do so again in first quarter of 2013.
The eurozone economy as a whole is already in recession, after contracting in the third and fourth quarters last year.