German economic outlook brightens
The outlook for the German economy has improved towards the end of the year, the latest ZEW index suggests.
Based on a survey among 223 analysts and institutional investors, the ZEW six month German economic outlook improved by 5.7basis points to a total of 16.1 basis points compared to the previous month.
Despite only modest 0.1% increases of industrial production between September and October, the assessment of the current economic climate in Germany improved by 0.6 basis points to 55 basis points.
In addition, the previously gloomy outlook on the eurozone economy improved by 0.4 basis points to -9.6 basis points.
ZEW president Clemens Fuest comments on the results: “Whilst the inflow of refugees continues to represent a political and social challenge in Germany, the slowdown of emerging market growth is putting pressure on the German export economy. Nevertheless, confidence increased that the German economy will be healthy enough to face these challenges.”
Mario Gruppe, analyst for NordLB comments on the improved outlook for the eurozone: “It appears that most respondents no longer subscribe to the cautious growth outlook presented by the ECB. In this context, the supportive triad of a weak Euro, low interest rates and low commodity prices appears to weigh stronger than the undoubtedly existing threats to growth such as the slowdown in emerging markets.”