Economy Minister Sigmar Gabriel will present the latest forecast to Chancellor Angela Merkel's cabinet on Wednesday.

"The (growth) expectation is 1.4 percent," said a coalition source with access to the report.

In October the government lowered its 2017 forecast from 1.5 percent to 1.4 percent. In November, the government's panel of economic advisers lowered its forecast to 1.3 percent from a previous estimate of 1.6 percent.

Europe's largest economy expanded at the fastest pace in five years in 2016, growing by 1.9 percent thanks to rising private and state spending, according to the Federal Statistics Office.

(reporting by Gernot Heller; writing by Erik Kirschbaum; editing by Joseph Nasr)