German business sentiment rose in February across all sectors as optimism for an end to the Covid-19 crisis more than offset concerns about the Ukraine conflict.
- Ifo’s business climate index increased to 98.9 from an upwardly revised 96.0 in January, signaling the highest level since August. This was better than economists had projected.
- Joerg Kraemer, chief economist at Commerzbank stated the results of the February Ifo survey are clear indicators that the German economy will benefit significantly from the easing of the Covid-19 crisis in the upcoming months.
- The companies were more satisfied with their current business. There was a significant improvement in expectations.
The German economy is expecting an end to Covid-19. Meanwhile, the escalation of the crisis in Ukraine remains a major risk factor.
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Source: Ifo Institute.