The Economic Research Institute (Ifo), headquartered in Munich, published the results of the German Business Survey for November, which was conducted with the participation of approximately 9 thousand companies.
Accordingly, the Business Environment Confidence Index for industry and trade in Germany, which was 84.5 points revised in October, rose to 86.3 points this month, carrying its increase for the second month in a row. The market expectation was for the index to rise to 85 points.
It was noteworthy that the rise in the index came after the announcement that the natural gas tanks in Germany were full and reduced the fear of supply shortages this winter.
In the said period, the Ifo Expectations Index in Germany also rose from 75.9 to 80 points, while the Current Situation Index decreased from 94.2 to 93.1 points.
“IT MAY BE LESS VIOLENT IN THE GERMAN ECONOMY”
Commenting on the issue, Ifo President Clemens Fuest stated that sentiment has improved in German companies and said, “Although companies’ assessments of the current situation are somewhat less positive, pessimism for the coming months has decreased sharply. The recession in the German economy may be less severe than many expected.”.
On the other hand, while the economic development in Germany slowed down due to the reflection of the weakening in the global economy on exports, the decrease in private consumption due to high inflation, the uncertainty in the energy supply, and the increase in energy prices, the Bundesbank report published on 23 November stated that the last quarter of this year and the end of 2023 regarding the German economy. the recession was marked for the first quarter.
Meanwhile, the German government expects GDP to expand by 1.4 percent this year and shrink by 0.4 percent next year.
Annual inflation, which was 10 percent in September, rose to 10.4 percent in October with the latest rise in energy and food prices, reaching the highest level since 1951.