Business confidence in Germany improves, as Ifo business climate index at 10-month high

Source: Dukascopy Bank SA
"Germany is on a solid path of growth, driven by favorable developments on the labor market, rising wages and increased employment. The main pillar of recovery is consumer spending."
 -Sigmar Gabriel, German Economy Minister


German business morale improved further in the current month, as business confidence surged to the highest level in 10 months, a sign the Euro zone's number one economy is set to pick up steam on the back of massive stimulus and a favourable exchange rate. The Ifo institute's business climate index climbed for a sixth consecutive month to 108.6 from 107.9 in March. Analysts had forecast 108.4 points in the reported period. Ifo's measure of current conditions increased to 113.9 in April from 112.1 in the previous month, while a gauge of expectations slipped to 103.5 from 103.9. Germany's Bundesbank remains upbeat about the country's growth prospects in 2015 and 2016 as it has recently raised its outlook, saying the economy will expand 1.8% in both years after previous estimates of 1.5% for 2015, and 1.6% for 2016. Similarly, the International Monetary Fund also expects The German economy to regain a stronger footing as it has revised its growth projections for the country to 1.6% this year and 1.7% in 2016.

Meanwhile, in Latvia's capital Greek Finance Minister Yanis Varoufakis faced sharp criticism from his Euro zone colleagues last week for failing to so far provide an updated list of reforms in order to receive financial aid, according to Jeroen Dijsselbloem, the chairman of the Euro zone finance ministers.


© Dukascopy Bank SA

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