The German government will cut its growth forecast for Europe's biggest economy for 2022 to 2.2% from 3.6% amid the war in Ukraine, a government source told Reuters.
It expects growth to pick up slightly to 2.5% in 2023, the source said.
After two years of the coronavirus pandemic, the German economy faced new risks due to the war in Ukraine, which was likely to have an impact on prices and supply chains, according to the new forecast.
Concerns about energy shortages and high energy costs on economic growth could dampen the outlook further, the source said.
Russia, heavily sanctioned over its invasion of Ukraine, is the dominant supplier of gas to Germany, and the war has sent energy prices soaring around the world.
Governments throughout Europe expected a robust recovery this year after the coronavirus pandemic, but Russia's invasion has thrown that into question.
The German government is due to present its updated economic forecasts on Wednesday.