MUNICH, Sept 24 (Reuters) - Ifo economist Klaus Wohlrabe said on Wednesday he expected the German economy to stagnate in the third quarter, adding reduced export and capital goods expectations, a faltering European economy and the ongoing Ukraine crisis were weighing on the mood.

German business sentiment dropped for a fifth straight month in September to its lowest level since April 2013, undermining hopes of a strong third-quarter rebound in Europe's largest economy, that would help give the continent a lift.

"The economy in the European Union continues to falter and the Ukraine crisis has produced a general sense of insecurity... there are hardly any bright spots," said Wohlrabe.

He added that he still expected to see German economic growth of around 1.5 percent in 2014 as a whole.

(Reporting by Joern Poltz, writing by Alexandra Hudson; Editing by Madeline Chambers)