Ifo expects German economy to grow 0.5 percent in second quarter, economist

BERLIN (Reuters) - Germany's Ifo economic institute expects Europe's largest economy to grow by 0.5 pct in the second quarter as businesses become more sober-minded, Ifo economist Klaus Wohlrabe told Reuters on Friday. "The euphoria is yielding to a more realistic view," Wohlrabe said after Ifo's leading survey showed that German business morale deteriorated slightly in May for the first time since October though it remained at a high level overall. "The global economy is not providing any additional impulses. Domestic demand remains an important pillar," the economist added. Wohlrabe said that a recent series of rail and postal strikes did not seem to have had an impact on business morale, however the rising oil price was dampening the mood among German manufacturers of producer goods. He also noted that it would become clear in the next one or two months whether the current good economic situation in Germany would weaken slightly. (Reporting by Jorn Poltz; Writing by Michael Nienaber; Editing by Caroline Copley)