The German economy has shrunk by around 0.2 percent this year, according to a forecast from the Institute for Macroeconomics and Economic Research (IMK) in Düsseldorf.
IMK estimated in its previous analysis that the German economy would end up with zero growth this year, but is now downgrading its estimate.
The institute is also downgrading its forecast for next year from 0.7 percent growth to 0.1 percent growth.
IMK is part of the Hans-Böckler-Stiftung, which has close ties to the trade union movement in Germany.