* Germany saw "very strong" performance in first quarter
* Slower second quarter a technical effect, not longer sign
* Ministry sees increasingly broad-based upturn this year
BERLIN, April 22 German economic growth will
slow in the second quarter after an unusually mild winter gave
Europe's largest economy a boost in the first three months of
2014, the Finance Ministry monthly report said on Tuesday.
The ministry said recent data suggested Germany had put in a
"very strong" performance between January and March, adding that
positive impetus likely came from industrial expansion and
construction activity, which benefited from the mild winter.
"Due to the weather-related surge in economic activity in
the first quarter, the seasonally-adjusted figure for the
following quarter will be weaker," the ministry said.
"But this technical effect should not be interpreted as a
sign the economic pace slowing," the ministry said, adding that
the upward trend of 'hard' economic data and optimism among
firms about the future pointed to ongoing economic expansion.
Recent data has shown industrial orders and output rising
while the private sector is expanding. Though the mood among
investors and businesses has worsened as the Ukraine crisis
wears on, it remains relatively upbeat.
The ministry said recent data gave it reason to believe the
economy was experiencing an upturn that would become
increasingly broad-based during the course of the year.
The government expects growth of 1.8 percent this year
thanks largely to a strong increase in private consumption as
consumers benefit from a strong labour market, decent wages and
moderate inflation while low interest rates discourage saving.
Economists polled by Reuters expect the economy grew by 0.6
percent in the first three months of this year and would grow by
0.4 percent in the second quarter.
The finance ministry expects inflation to remain moderate,
saying consumer prices would increase by 1.4 percent this year
and by 1.9 percent next year.
"There are no discernible deflation risks," it said.
Germany's tax revenues increased by 7.2 percent on the year
to 55.36 billion euros in March, helped by increased take from
income tax and sales tax, the ministry said.
In the first quarter, tax revenues amounted to around 140
billion euros, 3.7 percent higher than during the same period a
(Reporting by Michelle Martin; Editing by Tom Heneghan)