Boosted by the ECB measures and a weak euro, economic outlook for Germany has brightened again, counteracting fears of the Ukraine crisis escalating, the latest Bundesbank data reveal.
Overall, German GDP grew by 1.6% in 2014, In the fourth quarter of 2014, it rose by 0.7% in real terms while seasonally adjusted export figures grew by 1.25%. The figures exceed Bundesbank forecasts set out last month.
The growing optimism is also reflected in ZEW data, with the monthly index on the half year outlook for the German economy increasing by +4.6 to 53.0bsp, while the assessment of the current situation showed a significant improvement of +23.1bsp to an overall of +45.5bsp.
The survey, conducted among 227 analysts reflected a more cautious outlook on growth forecasts in the eurozone, which nevertheless improved by +7.5bps to -52.7bsp, the current situation in the eurozone is rated as -48.4bsp.
“The streams of ECB money and the surprisingly strong economic development in the fourth quarter of 2014 have generated a good mood among financial experts. This has been somewhat dampened by the heightening of tensions in the Ukraine and the confrontational stance of the new Greek government” comments ZEW president Clemens Fuest.