Germany's economy ministry said the expected slowdown in second-quarter economic growth will likely be as "exaggerated" as the pickup in first-quarter growth was. German GDP growth in the first quarter was unexpectedly strong, at 1.5 percent, boosted by positive one-time effects. "Germany's economy started the year well and proved robust despite burdening factors in the global economic environment," the ministry said. "But by now the global economic environment has worsened." Demand for German products has declined both abroad and domestically, leading to reduced industrial output, and rising energy and food prices have further hurt demand, it said. The ministry also said in a statement it expects inflation to remain "high" after reaching 3.3 percent in June, the highest level since December 1993. "Overall, it is to be expected that overall economic activity will weaken in the second quarter," it said