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As the outlook improves, German business morale rises again. The Guardian Nigeria News – Nigerian and World News

German business confidence improved for the fourth straight month in January as the energy crisis eased and Europe’s top economies hoped to avoid a recession, according to a key survey on Wednesday.

The IFO Institute’s monthly confidence barometer, based on a survey of nearly 9,000 companies, reached 90.2 points, up from 88.6 points in December.

After Russia’s invasion of Ukraine, this figure fell for months in 2022, with major gas exports cut sharply, causing energy and food costs to skyrocket.

But with government bailouts to keep prices down, warm winter weather and falling energy prices, inflation is starting to come down, and some predict Germany will be able to avoid the long-feared recession. increase.

“The German economy is entering the new year with more confidence,” said Ifo President Clemens Fuest.

Ifo said the outlook for the next six months was “remarkably bright” as the index continued to rise in the manufacturing sector, a pillar of the German economy.

But LBBW Bank analyst Jens-Oliver Niklasch cautioned, “We shouldn’t be too optimistic just because the feared crash didn’t happen.”

Businesses are still struggling with problems ranging from high energy prices to supply chain problems to rising interest rates, he said.

After months of dire warnings from the energy crisis, the latest wave of more optimistic forecasts for the German economy in 2023.

Earlier this month, Chancellor Olaf Scholz predicted that Germany would weather a recession this year.

In October, the government expected the economy to contract by 0.4% in 2023.

However, new official economic forecasts due out later Wednesday are expected to paint a more optimistic picture.

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