Dusseldorf The mood in the executive floors of the German economy improved in February – and this is now the fourth month in a row. The Ifo business climate index, which is considered the most important leading indicator for economic development in Germany, rose to 91.1 points in February. In January, the value was still 90.1 points.
“The energy price pressure on companies has eased significantly,” says Robert Lehmann from the Ifo Institute in the new episode of Handelsblatt Today. In addition, the improved business expectations helped the Ifo business climate index to rise again.
However, in all likelihood the German economy will also shrink in the first quarter of 2023 after the minus in the fourth quarter of 2022. In such a case, economists speak of a technical recession. So is the current mood better than the actual situation?
“The technical recession is still likely, but it should be very mild,” says Lehmann in an interview with host Anis Micijevic. In addition, the signs for the German economy have improved significantly for the year as a whole.
“If you compare that with the two major recessions of the last few years, then it’s more of a sideways movement at a very high level,” explains Lehmann.
More: Corporate mood better: Ifo business climate index rises again
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