Germany: The business climate deteriorates with the war in Ukraine

BERLIN, March 25 (Reuters) – The business climate in Germany deteriorated more than expected in March after the Russian invasion of Ukraine, the monthly survey by the Ifo economic research institute showed on Friday.

The business climate index fell to 90.8 from a (revised) 98.5 in February as economists and analysts polled by Reuters on average expected a figure of 94.2.

The component of business leaders’ judgment of their current business conditions fell to 97.0 from 98.6, and that measuring changes in their expectations fell to 85.1 from 98.4.

“Professionals in Germany expect difficult times,” said Ifo President Clemens Fuest.

On Wednesday, the research institute revised down its German growth forecast for 2022 to between 2.2% and 3.1% from 3.7% previously, due to the war in Ukraine.

Tableau (Report René Wagner and Klaus Lauer, French version Laetitia Volga, edited by Jean-Michel Bélot)

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