The eurozone crisis appears to have "taken a pause for breath"
- Wolfgang Franz, ZEW president
An index of German investor confidence rose to 22.3 in March, the highest level in more than 20 months, from 5.4 in February, said the ZEW Centre for European Economic Research on Tuesday. ZEW sentiment is based on a survey conducted among 350 German investors and analysts, who are asked to assess the six-month economic outlook.
"Investors have obviously buried any German recession concerns," said Carsten Brzeski, an economist at ING Group in Brussels.
"The ECB loans, progress on solving the crisis and the latest rally on stock markets have more than offset the negative impact from higher oil prices and the fact that the cold winter may have damped growth in February."
"In Germany, due to the good employment situation, domestic demand is likely to continue to stimulate growth," said ZEW president Wolfgang Franz.
he added. "Nevertheless, risks remain due to the low business activity in important European countries and the disruptions in the banking sector."
© Dukascopy Bank