Business sentiment in Germany unexpectedly improved, reaching its highest level in the past 15 months. This was reported in the results of a survey conducted by the Ifo Institute in August.
According to the report, the business climate index rose from 88.6 in July to 89.0. Experts, however, had predicted a decline.
Nevertheless, the recovery of the economy is proceeding very slowly. According to Ifo President Clemens Fuest, the overall situation is still not positive.
In the second quarter, Germany’s economy shrank by 0.3 percent. In the third quarter, growth of only 0.1 percent is expected. Export forecasts have also slightly decreased.
Experts believe that government infrastructure projects and the European Central Bank’s interest rate cuts will help gradually restore economic activity.
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