- ZEW President Prof. Dr. Clemens Fuest
Investors' mood in Europe's largest economy rose significantly this month, as the economy is gathering pace. According to data from the ZEW Center for European Economic Research, a gauge of investor and analyst expectation, which was designed to predict economic development during the next six months, surged to 38.5 up from 36.4 a month earlier. Economists however, expected a more moderate reading of 38. The ZEW survey of current economic situation within the country slid to 8.6 points compared with 8.9 in May.
German industrial output gained momentum in April and rose the most in more than a year, signalling German economy has accelerated further since expanding only 0.1% in the first quarter of this year. The Bundesbank also expects that the economic output should improve markedly in the second quarter, while warning of a potential slowdown in the second half of a year. Germany is recovering from a gradual weakening in the second and third quarters of 2012, and latest projections are showing that real GDP is expected to grow by 0.4% in 2013 and 1.8% in the next year. Despite signs of improvement subdued activity in the whole region are holding back the recovery and risks for another contraction remain high.
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