UPDATE 1-Leading institutes halve German 2013 GDP f'cast-paper

(Updates with details, combines takes)

BERLIN, Oct 10 (Reuters) - Germany's leading economicinstitutes see Europe's largest economy growing by 1 percentnext year, halving their April forecast due to a worseningglobal economic outlook, newspapers reported on Wednesday.

Citing a keenly-watched report by four economic institutesdue for publication on Thursday, Handelsblatt newspaper saidgrowth this year was seen at 0.8 percent, down from 0.9 percentin their April prognosis.

"A lot points to economic expansion slowing towardsyear-end," Financial Times Deutschland quoted the institutes assaying in their analysis.

The institutes expect unemployment at 6.8 percent on averagenext year, up from April's forecast of 6.2 percent.

Germany has weathered the near three-year-old euro zone debtcrisis relatively well but a recent slew of data has pointed toa slowdown and many analysts expect the economy to contract inthe third quarter.

The German government commissions the twice-yearly prognosisby four institutes, Ifo, IWH, IfW and RWI. Their joint reportflows into the government's own growth forecasts.

However, the institutes differed in their analysis of theeuro zone's handling of its debt crisis.

According to Die Welt newspaper, Munich-based Ifo andKiel-based IfW oppose the European Central Bank's unlimitedbond-buying programme, fearing this will reduce individualcountries' incentive to put their public finances in order.

Die Welt said IWH and RWI saw the bond purchases plan asreasonable but warned that fiscal and monetary policy should notbe tied together and the central bank's independence not put atrisk.

The ECB unveiled its controversial new bond-purchase plan -known as "Outright Monetary Transactions" or OMT - last monthand the institutes saw any large-scale purchases as amedium-term inflation risk.

"As a result, citizens and financial markets actors couldlose trust in the ECB's capacity to take care of price stabilityin the long run," the Frankfurter Allgemeine Zeitung quoted apassage from the report as saying.

(Reporting by Paul Carrel in Frankfurt and Annika Breidthardtin Berlin, editing by Gareth Jones)

((gareth.jones@thomsonreuters.com)(+49 30 2888 5214)(ReutersMessaging: gareth.jones.thomsonreuters.com@reuters.net))