Consumers in Europe's largest economy are moving less money across German shop counters since the government upped the sales or value-added tax (VAT) from 16 percent to 19 percent at the beginning of the year.

Official figures released o­n Tuesday showed that Germany's gross domestic product (GDP) rose by 0.5 percent in the period from January to March compared to the fourth quarter of 2006. The increase was down from 1 percent growth in the preceding three months.

"Consumer spending put the brakes o­n economic growth, largely in connection with the VAT hike at the beginning of the year," the Federal Statistics Office said in a statement. The GDP measures the value of a country's economic performance within the domestic territory.

However, Economics Minister Michael Glos said the higher VAT had been absorbed. Fresh investments at the beginning of the year had brought significant impulses to the country, he said. According to Glos, Germany was o­n track for further growth.

"The economic situation in Germany is o­n a robust growth path," Glos said o­n Tuesday.

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