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Business

German investors bank on economic upswing

German investor confidence hit a four-year high in November, adding to hopes that growth in Europe’s biggest economy might accelerate in the month ahead. The upswing is seen helped by a recovery in the eurozone.

A closely watched economic indicator fathoming the moods of German institutional investors climbed to 54.6 points in November, the ZEW institute, which is based in Mannheim, Germany, announced Tuesday.

The rise from 52.8 points in October was stronger than expected by market analysts and sent the ZEW indicator to a level last seen in October 2009.

Noting that German investors had been upbeat for months, ZEW President Clemens Fuest said the latest boost may have come from slightly improved economic perspectives for the eurozone.

According to a growth estimate released by the Organization for Economic Development and Cooperation (OECD) on Tuesday, economic growth in the 17-nation currency area is forecasted to rise to about 1 percent in 2014, up from shrinking output this year. The organization, which comprises the 24 most advanced global economies, predicted German growth to accelerate from 0.5 percent to 1.7 percent.

However, a slight drop in economic output in both Germany and the eurozone in the third quarter of 2013 weighed on investors' assessments of current economic developments.

Therefore, ZEW's sub-indicator measuring current perceptions fell from 29.7 points in October to 28.7 points in November.

ING Bank analyst Carsten Brzeski told Reuters news agency that, in the medium term, the German economy appeared set to further benefit from low interest rates, a robust labor market and solid domestic consumption in 2014.

uhe/ph (Reuters, dpa, AFP)