The German economy is expected to grow by 0.2% this year, narrowly avoiding a recession, according to the annual government economic report published on Wednesday.

This was revised up from the autumn forecast of a 0.4% decline this year.

"There are no signs of a significant recession, which many observers have long considered inevitable," Economy Minister Robert Habeck said in the report. (Reporting by Christian Kraemer, Writing by Rachel More; Editing by Madeline Chambers)