BERLIN (Reuters) -Germany's government expects the economy to shrink by 0.4% this year in its draft autumn projections, a source with knowledge of the projections told Reuters on Friday.

The economy is then expected to grow 1.3% next year and 1.5% in 2025, according to the source.

The government had predicted economic growth of 0.4% for 2023 in its April forecast.

German Economy Minister Robert Habeck is set to present the government's autumn forecast on Wednesday.

The German economy ministry was not available for comment.

Inflation is expected to come in at 6.1% this year and at 2.6% next year, the source added.

Last month, the European Commission cut its forecast for the German economy to a 0.4% contraction this year, compared with the 0.2% growth projected previously.

German economic institutes such as Ifo and DIW also expect a 0.4% contraction.

(Reporting by Holger Hansen, Writing by Miranda Murray, Editing by Friederike Heine)