The German economy performanced well in the year 2010 with a GDP growth rate at 3.7%.Though this tremendous tendence has slowed down in 2011,Germany economy still experienced an increasing trend with a GDP growth rate at 3%.Compared with other EU-countries,Germany is featured with its high growth,limited unemployment and low inflation.The strong export engine,the stable fiscal polices,the successful reforms and the convergence of new and old Federal States have all contributed to its excellent performance.However,the potential problem and risk in its internal economic structure and the external economic environment have put the sustainable development of German economy under challenge.Basing on the 2010-2011 macroeconomic performance of Germany,this paper focuses on the reasons behind.And with the internal and external situation,we also raise our own outlook for the German economy in the future. <<