The index reached a record high in July 2011
Increasing business confidence index suggests that start of 2014 is quite positive for the German economy. According to the Institute for Economic Research in Munich, which interviewed representatives of 7 thousand German companies in December 2013, the business climate index grew from 109.5 to 110.6 points, as Financial Times reports.
Data for GDP growth in 2013 remains quite weak - 0.4 %. However, analysts predict a revival of German exports as the global economy recovers.
Andreas Rice, chief German economist at UniCredit Research, said that last year, investment in machinery and equipment decreased compared to the previous period by 2.2 %. However, now when worries about a possible recession in the euro zone disappeared, the interest of depositors should rise again. In January, the business activity index has increased from 55 to 55.9 points.
The Institute of Economic Research predicted growth of the German economy in Q1 2014 at 0.5 %.
