Ifo's Wohlrabe says falling euro, slumping oil lift German sentiment
The weaker euro and falling oil prices had an especially positive impact on Germany's business climate in November, Ifo economist Klaus Wohlrabe told Reuters on Monday.
Wohlrabe said it was too early to talk about a turnaround in the Ifo index, which rebounded in November after six straight monthly declines. But he added the rise in November index to 104.7 from 103.2 in the previous month was an optimistic signal.
Wohlrabe said in an interview that if the positive trend is confirmed in December it will clearly have a positive impact on economic growth in the first half of 2015. He also said he expects 2014 gross domestic product to rise by 1.4pc - mainly due to upward revisions in the first two quarters.
The German government has sharply cut its growth forecasts to 1.2pc for this year and 1.3pc for next year. Wohlrabe also said that the crisis with Russia over Ukraine and the series of train strikes in Germany were not having not major impact on Germany's overall business climate.