BERLIN, Jan. 25(Xinhuanet)-- The German government lowered its economic growth projection for 2005 to 1.6 percent, local media reported Tuesday.

The Economics Ministry said in its annual economic report to bereleased Wednesday that Germany's gross domestic product(GDP) will grow at 1.6 percent in 2005, down from previous 1.7 percent forecast.

"Export growth will continue to drive the recovery but at a much slower pace," said Bert Ruerup, head of the government's five-member panel of economic advisers.

Stronger domestic growth would be necessary for a lasting economic boost, Ruerup said.

The German economy grew at 1.7 percent in 2004 after three years of stagnation.