German investor has positive confidence for the 1st time since war in Ukraine

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German investor confidence hit positive territory in January for the first time since the outbreak of the war in Ukraine, as signs point to a milder recession in the winter months than initially anticipated, the institute of economics said. ZEW economic survey this Tuesday (17).

The institute’s economic confidence index rose to 16.9 from -23.3 in December, beating expectations of analysts polled by Reuters for a reading of -15.0.

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“For the first time since February 2022, the month in which the war in Ukraine began, the indicator points to a noticeable improvement in the economic situation in the next six months,” said ZEW President Achim Wambach.

Wambach said a more favorable situation in energy markets and the German government’s easing measures, in particular, contributed to the index’s 40.2 point jump in January.

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The prospect of lower inflation has raised expectations for consumer-related sectors, while the lifting of Covid-19 restrictions in China has improved the outlook for export-oriented and energy-intensive sectors, he added.

German inflation eased further in December, with consumer prices rising 9.6% year-on-year in harmonized terms, the federal statistics office said, after a harmonized annual inflation rate of 11.3% in November and 11, 6% in October.

The indicator measuring current conditions rebounded slightly in January, rising to -58.6 from -61.4.

The federal statistics office said last week that Germany’s economy must have stagnated in the fourth quarter of last year and grew 1.9% on the year, suggesting that Europe’s biggest economy may escape a recession over the winter.

Source: CNN Brasil

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