The Ifo business climate index fell in January to 90.1 points from 92.2 points in the previous month, as the Munich economic research institute announced on Monday for its survey of 9,000 managers. Economists polled by Reuters had expected a slight decrease to 91.8 points. “
The managers judged the outlook for their businesses and their situation to be less favorable than recently.
Due to the corona pandemic, the German economy collapsed by five percent in 2020 as it had not been since the financial crisis and at the same time it shrank for the first time in eleven years. Economists believe that the economy will again see a noticeable improvement in the current year, but this depends heavily on the further course of the pandemic and the success of the vaccinations. So far, the federal government has officially expected growth of 4.4 percent for 2021, but is likely to lower its forecast to three percent in the new annual economic report on Wednesday, as Reuters learned last week.
(APA / Reuters)