- Carsten Brzeski, an economist at ING Group
Despite the Eurozone recession, German business morale rose unexpectedly in November, after six straight month of decline, signaling the Europe's largest economy may gain momentum. The Ifo Institute for Economic Research said that its business climate index climbed to 101.4 this month, up from 100 in October. However, economists had predicted German business climate to drop to 99.5.
Also Friday, the Federal Statistical Office (Destatis) said that German economy continue to expand in the third quarter, however, at a slower pace. Nation's final gross domestic product slowed to 0.2% compared to a 0.3% growth in the second quarter. In the meanwhile, exports from Germany were up 1.4% on quarterly basis, while imports added 1%.
"That is truly surprising and a positive surprise but it certainly doesn't mean German companies now expect a boom," said Carsten Brzeski, an economist at ING Group in Brussels. "It's more that they don't want to join the chorus of the doom- and-gloom merchants, they know we're not over the worst, but that things will get better. Markets have calmed down and there are green shoots in the global economy."
© Dukascopy Bank SA