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.
“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.
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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