Monday Markets Mail #KW 8

on 22nd of February 2021

German IFO index rises sharply

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© Adobe Stocks
  • Ifo business climate index rose to 92.4 points from 90.3 points in January
  • "German economy proves robust despite lockdown, mainly due to strong industrial activity"
  • Economists believe the economy will improve noticeably again this year
Berlin (APA) - The mood of companies in Germany has brightened surprisingly signicantly in
February. The Ifo business climate index rose to 92.4 points from 90.3 in January, the Munich-based
economic research institute said on Monday on its survey of 9,000 managers. Economists polled by
Reuters had expected only a slight rise to 90.5 points after the barometer fell at the start of the year
due to the second wave of corona.

"The German economy is proving robust despite the lockdown, mainly because of strong industrial
activity," Ifo President Clemens Fuest said. Managers assessed the outlook for their businesses and
their situation more favorably than recently.

In 2020, the German economy had slumped by ve percent due to the corona pandemic, the worst
since the nancial crisis, and at the same time shrank for the rst time in eleven years. Economists
believe that the economy will see a noticeable improvement in the current year, although this will
depend to a large extent on the further course of the pandemic and the success of the vaccinations.
For the current rst quarter of 2021, some experts expect a further dampening of the German
economy due to the current lockdown in the food service and retail sectors.