The German economy would slow down its growth in the second quarter of 2016 despite a positive kickoff as construction recovery was subdued and foreign trade environment remained difficult, said the Economy Ministry on Friday.
Europe's biggest economy had a decent start into the second quarter, said the ministry in its monthly report. In April, industrial output increased by 0.8 percent month on month. Jobless rate fell to a new record low.
The ministry said private consumption remained a main driver of economic growth as the good situation in the labor market and the low inflation continued to boost consumer demand.
However, the spring recovery in construction sector would be subdued after a mild winter and the external environment for the German economy remained tough.
"After a positive start to 2016, growth in the German economy in the second quarter is expected to slow," the ministry said.
German gross domestic product (GDP) grew by 0.7 percent in the first quarter of 2016, mainly thanks to strong private consumption, government spending on refugees and construction investment. The German government forecast the economy to grow by 1.7 percent over the whole year of 2016.
On Friday, the ministry said the German economy remained in solid growth trend.