German companies’ confidence in the country’s economy continues to improve. This is shown by the so-called Ifo index, which is based on reports from around 9,000 companies in Germany.
Increased five months in a row
According to Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, German business confidence has risen for five months in a row and is the highest it has been in a year. However, it must be remembered that it comes from a very low level.
– In the autumn, business confidence was shot down by massive inflation, the energy crisis and massive economic uncertainty, he writes in a comment.
– But since then there has been a little more calm on energy prices and the economic outlook, and this softens business confidence.
Better than feared
Allan Sørensen, chief economist at the business organization Dansk Industri (DI), had feared that the current turmoil in the financial markets would change the German business community’s mind.
– But the measurement of German business confidence is slightly better than expected, he writes in a comment.
And that is something that you should be happy about in this country, he believes.
– The German economy has come through the winter better than feared. The early forecasts for 2023 pointed to German decline, but they now point more to stagnation or very weak positive growth.
Danish exports for 215 billion
– After all, Germany has enormous importance for the Danish economy. Germany is our second largest export market, and we have many sub-deliveries to German businesses in particular.
– We hope that things will soon start to go a little better with German business, as hopefully it can also throw some orders off to Danish companies, says Allan Sørensen.
According to Allan Sørensen, the Germans bought Danish goods and services for DKK 215 billion last year.
