The German economy will grow 0.7 percent in 2013 supported by domestic demands and exports, German economic thinktank Ifo said here on Thursday. \"The German economy looks set to contract in the fourth quarter of 2012, before staging a recovery that is expected to be modest initially in 2013,\" Ifo said in a statement. However, the growth prospect was based on the assumption that \"the euro crisis does not escalate and remains in line with the baseline scenario,\" the thinktank said. It added that no significant growth in employment is expected during this period.