The Bundesbank said in its monthly report on Monday that German economic growth remained subdued in the first quarter. 

According to the bank, the major draggers behind this subdued performance were weak industrial production, falling export demand for cars and deteriorating manufacturing sentiment.

Struggling with unexpected weakness in among its car manufacturers, Germany barely escaped a recession last quarter, the Bundesbank said in the report. 

The regulator also noted that fresh indicators suggest any recovery will be slow, at best, a drag on growth across the entire Eurozone.