German Economy Set to Surge

June 29, 2006

A recent survey showed that German business confidence increased to its highest level in 15 years, with no signs of slowing. This unexpected rise showcases the recent growth in Europe’s largest economy.

According to a recent report by research company GfK, the “consumer sentiment index” also rose to 6.8 in June, the highest it’s been since 2001. Until this point, the consumer’s outlook had remained bleak, and their spending weak.

“With the end of the long winter, the mood among consumers has significantly brightened and it looks as if the trough of recent years has now been left behind,” said Rolf Buerkl of GfK.

“Optimism that the German economy will develop positively has increased considerably, while personal income expectations have also improved,” he added.

With these indications, leading analysts upped their prediction for growth of the German economy in 2006 from 1.2% to 1.8%. GfK recently stated, “Trust in a positive development of the German economy has increased considerably.”

Source: BBC News