FRANKFURT—German economic growth accelerated at the start of the year helped by robust domestic demand, particularly in the construction sector, according to the Federal Statistical Office.

Confirming its earlier assessment of Europe’s largest economy, Destatis on Tuesday said that Germany’s gross domestic product grew at a quarterly rate of 0.7% in the first three months of the year, which translated into an annualized rate of 2.7%. Growth in the quarter was more than double the rate of 0.3% recorded in the fourth quarter...