German Economy Minister Peter Altmaier is due to present the government's official forecast next week. The new number was first reported by Der Spiegel magazine earlier on Friday.
Although a string of recent indicators have shown Europe's largest economy weathering the global pandemic better than many had expected, the advent of the virus's second wave in the fourth quarter dealt a blow to hopes of a swift recovery.
The government introduced a lockdown in November, and tightened measures further in December and January, crippling the already beleaguered retail, hospitality and tourism industries.
(Reporting by Holger Hansen, Thomas Seythal and Christian Kraemer, writing by Thomas Escritt; Editing by Maria Sheahan and Caroline Copley)
