There has been a big jump in German business confidence.
The latest Ifo economic think tank survey showed that business sentiment in August rose to its highest level in nearly a year. That has boosted expectations the euro zone’s largest economy will lead a recovery in the region in the coming months. Earlier this month new figures showed Germany came out of recession in the second quarter of the year. However the head of Germany’s central bank, Axel Weber, has said the recovery is largely attributable to government stimulus measures and loose monetary policy and may not yet be sustainable. Many economists agree. On the up-side, German exports posted their biggest monthly rise in nearly three years in June. Analysts believe rising demand in foreign markets will continue that trade trend. How the German economy rebounds from its deepest post-war recession is vital to Chancellor Angela Merkel who is facing a general election in a month’s time. She can claim credit for any improvement, even though her rival Foreign Minister Frank-Walter Steinmeier is part of a “grand coalition” governing Germany.