These figures compare with the institutes' previous spring forecasts of 0.9 percent growth for 2012 and 2.0 percent for 2013.
The four institutes are due to announce their revised growth forecasts on Thursday.
Citing confidential sources, the newspaper also said the institutes expect the euro zone to overcome its sovereign debt crisis next year and that German unemployment will continue to fall.
Other institutes and the International Monetary Fund have also recently trimmed their growth forecasts for Germany this year and next because of the global slowdown and recession in parts of euro zone.
(Reporting by Berlin bureau)
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