- Jens Kramer, an economist at NordLB
Confidence among German investors increased to the highest in 2 1/2 years in January, adding to signs that the Europe's largest economy may gather momentum. According to the report by the ZEW Center for European Economic Research, a gauge of investor and analyst expectations, which is designed to predict economic developments in the next six months, jumped to 31.5 from 6.9 in December. This is the highest reading since May 2010 and the biggest monthly gain in 11 months. Despite the fact, the German statistics office suggests the economy may shrunk by 0.5% in the final quarter of 2012, Bundesbank said there are indications that a recovery has already begun.
"It gives reason for optimism," said Jens Kramer, an economist at NordLB in Hanover, Germany. "We should see a considerable economic improvement toward mid-year with stronger momentum. The worst in the crisis seems to be behind us."
"Financial market experts seem to expect that the positive sentiment on the financial markets may soon result in companies realizing investments that had been postponed earlier on," said ZEW head Wolfgang Franz in a press release. "However, the economic situation of important trade partners is rightly considered to still be weak," he added.
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