BERLIN (Reuters) - The German government is sticking to its forecast that Europe's largest economy will grow by 1.8 percent this year even after it suffered a contraction in the second quarter, one of Germany's state secretaries for economics told Reuters on Wednesday.
"We don't see any need to correct our growth estimate," Rainer Sontowski said.
"Geopolitical risks are burdening the German economy but the basic economic trend remains positive," he added, referring to crises in Ukraine and the Middle East.
Sontowski said the economy's performance in the third quarter would be decisive for the government's updated growth forecast for the year, expected to be released in October.
Many economists cut their estimates for 2014 gross domestic product (GDP) to 1.5 percent after the German economy shrunk by 0.2 percent between April and June due to weak foreign trade, which has traditionally supported growth, and a decline in construction investment.
German Economy Minister Sigmar Gabriel has said the German economy will likely return to expansion in the course of this year.
(Reporting by Gernot Heller and Rene Wagner; Writing by Michelle Martin)