BERLIN (Reuters) - Germany could grow less in 2014 than the 1.8 percent forecast by the government early this year, Economy Minister Sigmar Gabriel said in an interview published on Sunday, although he added the country was still in good shape compared to euro zone peers.
Gabriel told Deutschlandfunk radio in an interview that the Russia/Ukraine crisis had hit the investment climate in Germany, affecting not only firms that had direct business with Russia but also the wider business mood.
"We could see growth this year lower than our forecast of 1.8 percent... but we still have very strong growth momentum and the labour market is robust," he said.
The government typically issues a revised annual growth forecast in autumn. Some economic institutes and analysts have already scaled back their growth forecasts for 2014.
The German economy steamed ahead at the start of the year thanks to an unusually mild winter which boosted construction activity. But it contracted by 0.2 percent in the second quarter, leading some to warn of the risk of recession.
The crisis in Ukraine and a faltering European economic recovery are seen as the main factors behind the weakness.
(Reporting by Alexandra Hudson; editing by Jason Neely)