BERLIN, Jan 12 (Reuters) - Germany’s BDI industry association said on Tuesday it expected Europe’s largest economy to grow by 3.5% this year after gross domestic product plunged by roughly 5% in 2020 due to the COVID-19 pandemic. The BDI forecast is less optimistic than the government’s estimates, published in October, in which Berlin predicted gross domestic product to rebound with an expansion rate of 4.4%. The Federal Statistics Office will release a flash estimate for full-year 2020 GDP on Thursday. The government will update its GDP growth forecast for 2021 later this month. (Reporting by Michael Nienaber; editing by Thomas Seythal)