German business confidence sees record rise

| November 24, 2010 | 0 Comments

The Munich-based Ifo think tank today announced confidence among German firms grew in November.

The Business Climate Index rose to 109.3 in November, up from 107.7 the previous month – the strongest rise since German reunification in 1990.

The closely-watched index also confounded expectations of a fall to 107.5.

Meanwhile, commenting on the figures, the Ifo institute said: “The upswing in the economy is gaining more and more strength.”

The figures will be a welcome boost for the euro zone, which is suffering amid the Irish debt crisis and fears have been raised for the Portuguese and Spanish economies as bonds surge to dangerous levels.

However, it appears that Germany is driving the recovery of the euro zone after figures yesterday revealed economic growth in the July to September period was 0.7% – confirming an earlier estimate this month.

On an annual basis, the German economy grew by a staggering 3.9%.

Export demand helped to bring Germany out of recession in the second quarter of last year – much sooner than many of its counterparts throughout the world.

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