Germany's leading economic institutes downgraded their growth forecasts for Germany on Thursday. Germany's economy is expected to expand 1.6% this year, down from the previous estimate of 1.8% growth, and by 1.5% in 2017. The institutes noted that the economy would continue to expand moderately.

Inflation is expected to be 0.5% this year and 1.5% in 2017, driven by domestic demand and higher wages.

The institutes also said that the European Central Bank's quantitative easing was appropriate.

The institutes noted that the government should boost investments in infrastructure and education.