German economic growth slows in Q1

The economic growth of Germany slowed down in the first quarter of 2015 due to a drag from foreign trade, official data showed on Wednesday.

The gross domestic product (GDP) in Europe's biggest economy increased quarterly by 0.3 percent from January to March, according to German federal statistical office Destatis. In the last quarter of 2014, the German economy expanded by 0.7 percent.

According to Destatis, positive contributions mainly came from domestic demand, including private and public consumption as well as investment. Foreign trade, however, had a downward effect on the growth as imports recorded a stronger increase than exports.

"The German economy continued to grow at a slightly slower pace," Destatis said in a statement, adding that compared with the same period of the previous year, Germany's GDP rose by 1.1 percent in the first quarter.

Private consumption was the main pillar of German economic growth in recent two years thanks to stable labor market and increasing wages. Falling energy prices since last year also helped boost domestic demand.

Foreign trade, Germany's traditional growth engine, contracted due to weak performance of the euro zone and geopolitical tensions.

The economy expanded by 1.6 percent in 2014. The German government expected the growth to increase to 1.8 percent in 2015 with domestic demand as the main driving force. Endi