BERLIN, January 25 (Reuters) – The morale of German entrepreneurs deteriorated in January for the second consecutive month, while Europe’s largest economy struggles to emerge from recession, according to a survey carried out on Thursday.
The business climate index published by the Ifo institute stood at 85.2, compared to 86.7 forecast by the Reuters consensus.
The indicator fell from a slightly downwardly revised reading of 86.3 in December.
“The German economy is mired in recession,” summarizes Clemens Fuest, president of Ifo.
Business uncertainty has increased considerably, underlines Klaus Wohlrabe, head of Ifo surveys.
Germany is struggling to emerge from recession after its gross domestic product contracted by 0.3% in 2023.
The economic outlook remains clouded in 2024. On Wednesday, Ifo revised its growth estimate downward to 0.7% for the German economy this year. (Reporting Rachel More and Reinhard Becker; French version Corentin Chappron, edited by Blandine Hénault)
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