The German economy is likely to continue its expansion in coming months, but at a slower pace due to subdued foreign trade, said the German Economy Ministry on Monday.

The ministry said in its monthly report that Europe's biggest economy gained some momentum at the start of 2016 buoyed by domestic demand.

"Consumption remains a reliable pillar of the robust domestic economy," it said, adding that a solid labor market, increasing wages and stable prices boosted private consumption, while the inflow of refugees led to "a noticeable increase" in public spending and provide impetus to construction investment.

However, the German economy faced uncertainties as "the economic prospects of the global economy remained subdued," the ministry said.

In 2015, the German economy grew by 1.7 percent, driven mainly by private consumption and government spending on accommodating some 1.1 million refugees. Foreign trade, Germany's traditional engine, contributed merely 0.2 percentage points to the growth.

Recent data showed that new orders received by German manufacturing companies from foreign countries slumped in February.

Last month, the German government's economic advisers cut their forecast for 2016 growth to 1.5 percent, attributing the downward adjustment to "somewhat weaker external demand."