- Carsten Brzeski, analyst at ING DiBa
German investor morale continued to improve amid increasing confidence that the Euro zone's number one economy is strong enough to weather the refugee crisis and the economic slowdown in China. According to the ZEW Centre for European Economic Research, its index of investor and analyst expectations, which aims to foresee economic developments in the coming six months, surged to 16.1 in December, compared with 10.4 in November. A gauge measuring current conditions came in at 55.0, down slightly form 54.4 in November.
The German Bundesbank kept its 2016 growth outlook for the nation's economy at 1.8% and projected the economic output to increase 1.7% in 2017. The central bank predicted export markets outside the Euro zone to recover and economic growth within the 19-nation bloc to gain a little more traction. Yet, domestic demand and particularly private consumption remains an important growth driver for the German economy. Furthermore, the Economy Ministry admitted that the nation's economy received additional boost from refugees. The Euro zone's powerhouse grew by 0.3% in the third quarter.
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