BERLIN (Reuters) - Germany's panel of economic advisers raised their annual growth forecast for the German economy on Thursday to 1.8 percent for this year from its previous estimate of 1.0 percent, citing cheaper oil and a weaker euro.

"The oil price has fallen significantly since October 2014, which lifted households real income and improved consumption expenditure. At the same time German exports are stimulated by the devaluation of the euro," the advisers said in a statement.

The panel, which is traditionally known as the 'wisemen' but now includes one woman, said the positive economic effects of the European Central Bank's (ECB) loose monetary policy were only one side of the medal.

"The brighter outlook should not blind us to the fact that the ECB's measures are associated with significant risks, especially for financial stability, and they cannot replace necessary structural reforms," they said.

(Reporting by Michelle Martin; Editing by Caroline Copley and Crispian Balmer)