- Experts generally expect further positive development of German economy during next 6 months
- Economic optimism suffers from considerable downside risks, slowdown in trading partners, high oil prices, debt crisis
ZEW economist:
- Downside risks decreased considerably, recession risk seen at 15% now vs 30% a year ago
- 34% of participants expect higher inflation in German, 29% in euro zone
- Higher percentage of investors expect higher inflation due to ECB easing policies, oil prices
- ECB rates expected to remain at current level for next 6 months
- Did not see big difference in answers coming through survey period, despite Spain problems intensifying
Reuters reporting.
