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

(Updates with details, combines takes)

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

Citing a keenly-watched report by four economic institutes due for publication on Thursday, Handelsblatt newspaper said growth this year was seen at 0.8 percent, down from 0.9 percent in their April prognosis.

"A lot points to economic expansion slowing towards year-end," Financial Times Deutschland quoted the institutes as saying in their analysis.

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

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

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

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

According to Die Welt newspaper, Munich-based Ifo and Kiel-based IfW oppose the European Central Bank's unlimited bond-buying programme, fearing this will reduce individual countries' incentive to put their public finances in order.

Die Welt said IWH and RWI saw the bond purchases plan as reasonable but warned that fiscal and monetary policy should not be tied together and the central bank's independence not put at risk.

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

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

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

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

Keywords: GERMANY GROWTH/INSTITUTES