GERMAN businesses are increasingly confident in the economic recovery, defying worries around the US debt ceiling and giving economists hope that growth can continue to improve.
The ZEW sentiment index, published by the Centre for European Economic Research yesterday, increased to 52.8, up from 49.6 a month ago, beating expectations.
That means the index is approaching double its long term average of 53.9, and represents the strongest economic sentiment since April 2010.
Analysts estimate this means GDP growth should pick up solidly.
“We agree broadly with the prospect of a continued recovery and maintain our forecast for the German economy to expand by 0.5 per cent this year and 1.5 per cent next,” said Capital Economics’ Jennifer McKeown.