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Investor confidence on the rise in Germany

A closely watched economic survey has found that German investor confidence has risen significantly this April. It said the main reason for the surge were government measures to stimulate spending.

Graphs indicating positive economic gain with German flag in background

The ZEW says things may be looking up for Germany's economy

The Center for European Economic Research (ZEW) reported the surprisingly positive reading on Tuesday, which shows the highest level of investor confidence since July 2007.

The ZEW index, which is a measure of German confidence against main players in financial markets, rose to 13 points in April, an increase of more than 16 points from March. This was the first time in over a year and a half that the index was in positive territory.

The results reflect an initial positive response to Germany’s two stimulus packages, which were passed over the past six months after the financial and economic crises had hit Germany. Experts say the April index is a strong indication that the downward business cycle is bottoming out.

ZEW President Wolfgang Franz also said this was an unequivocal sign of good things to come for the German economy.

“It is becoming more likely that the economy will slowly recover in the second half of the year,” he said.

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