BERLIN- German business morale rose in March, a survey showed on Tuesday, as companies expect a recovery after two years of contraction in Europe’s largest economy.
The Ifo institute said its business climate index stood at 86.7 in March, in line with the forecasts of analysts polled by Reuters.
Companies were more satisfied with the current situation and their expectations also rose noticeably, the survey showed.
“The German businesses are hoping for a recovery,” said Ifo’s president Clemens Fuest.
In the first quarter, the economy is expected to grow by 0.2 percent, said Klaus Wohlrabe, head of surveys at Ifo.
Germany’s gross domestic product fell by 0.2 percent in the fourth quarter.
Germany’s planned 500-billion-euro infrastructure fund could raise economic output by an average of more than two percentage points per year over the next 10 years, Germany›s DIW economic institute said.
DIW, one of Germany’s main economic forecasters, cut its forecasts for Europe’s largest economy on Friday for this year and next due to political uncertainty and global trade tensions.
