MUNICH, Germany Mon Aug 25, 2014 4:28am EDT
MUNICH, Germany Aug 25 (Reuters) - The Ifo Institute will likely cut its gross domestic product (GDP) growth forecast for Germany in 2014 to 1.5 percent from the current target of 2.0 percent and third quarter growth will be nearly flat, Ifo economist Klaus Wohlrabe said on Monday.
Wohlrabe told Reuters the Ukraine crisis was most definitely a burden on the German economy though it was hard to quantify its impact on Europe's largest economy. Companies with business ties to Russia are generally more pessimistic, he said.
The Ifo economist said Germany is nevertheless far from a recession with the car and chemical sectors proving to be bright spots recently and the construction industry still in solid shape. Domestic consumption also remained strong, he said. (Reporting by Jens Hack; Writing by Erik Kirschbaum and Stephen Brown)
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