In January, the IFO index which measures the business climate in Germany scored 90.2 points as expected and against the previous 88.6 points.
The index measuring current conditions scores 94.1 points from 95 expected and 94.4 previously. As the Ifo economist Klaus Wohlrabe commented, “there probably won’t be a recession”. “But Q1 GDP is likely to shrink slightly, mostly due to consumption. We are only in January and in my opinion we already seem too optimistic. The milder winter certainly helped, but we’ll see if inflationary pressures continue to ease as expected or if there is another turnaround in the coming months,” he concluded.