Ifo outlook eurozone brightens
The economic climate for the eurozone has improved significantly according to the latest data provided by the German ifo Institute.
The ifo Index for the economic climate rose from 102.3 to 112.7 bsp, thereby exceeding its long term average of 106.1bsp.
Respondents also anticipate an increase in price levels of 0.7%, over the next three to five years, they anticipate an annual inflation rate of 1.6%, reflecting optimism that deflation will be contained in the long run.
With the exception of Greece and Finland, the economic situation has improved or remained unchanged compared to the end of 2014.
Consequently, the six month outlook has improved from 100bsp to 109.8 bsp. While respondents were confident about growth forecasts for most eurozone countries, they continue to be pessimistic about Greece, Portugal, Slovenia and Lithuania.
The January ifo Index is based on reports collected among 291 economic experts and analysts.