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The Ifo Institute on Thursday downgraded Germany's growth projections for 2019 and 2020. The think tank forecast the economy to slip into a recession in the third quarter of 2019.

In its Autumn Forecast, Ifo said the largest Eurozone economy will grow only 0.5 percent this year, instead of 0.6 percent estimated earlier. Likewise, the projection for 2020 was downgraded to 1.2 percent from 1.7 percent.

The Ifo expects the economy to contract 0.1 percent in the third quarter after shrinking 0.1 percent in the second quarter. However, Ifo projected a marginal 0.1 percent expansion in the fourth quarter.

The institute said the outlook is weighed down by global uncertainties and risk of a no-deal Brexit.