Stuttgart - Germany's council of five economic advisers pegged back Thursday to its growth prediction for next year from nil growth to a shrinkage of 0.2 per cent.

The president of the ZEW Centre for European Economic Research, Wolfgang Franz, said the adjustment reflected the effects of the world financial crisis.

He and his four colleagues also reduced their forecast of growth for the current year to 1.5 per cent, down from their earlier forecast of 1.7 per cent.

Franz said the change followed third-quarter data showing Germany is officially in recession after two quarters of negative growth.(dpa)