The newspaper said the new forecast for Europe's largest economy, to be publicly released on Wednesday, sees an uptick in 2020, when Germany's gross domestic product (GDP) is expected to expand by 1.6 percent.

A spokesman for the Economy Ministry declined to comment on the newspaper report ahead of next week's planned news conference by Economy Minister Peter Altmaier.

Morale among German investors improved slightly in January, but their assessment of the economy's current condition deteriorated to a four-year low, a survey showed on Tuesday.

Weaker growth in emerging markets, trade disputes driven by U.S. President Donald Trump's 'America First' policies and the possibility that Britain will leave the European Union without a deal in March are putting the brakes on a nine-year expansion.

The German economy grew by 1.5 percent in 2018, the weakest rate in five years and markedly slower than the previous year, with exporters hit by U.S. trade disputes and carmakers struggling to adjust to stricter pollution standards.

The Ifo institute last month reduced its forecast to 1.1 percent. The International Monetary Fund this week cut its forecast to 1.3 percent from 1.9 percent.

(Reporting by Andrea Shalal; Editing by Alison Williams, William Maclean)