The January Ifo index indicates ongoing uncertainty in the German economy, reflecting geopolitical tensions and tariff threats. Despite this, ING maintains a view of an upcoming recovery, supported by recent macro data showing increasing industrial orders. However, significant structural issues remain, and the government must implement necessary reforms for a sustainable recovery. Carsten Brzeski, Global Head of Macro at ING notes.
Ifo index shows mixed signals
“An unchanged Ifo index in January reflects the uncertainty that has hit the German economy again on the back of geopolitical tensions and tariff threats. However, for now, we stick with our view of an upcoming recovery.”
“Despite this morning’s disappointing Ifo index reading, there are good reasons to be more positive about the German economy. The latest macro data indicates a clear turning point in industry at the end of last year.”
“Even if today’s Ifo index undermines some of our optimism, an economic liftoff is clearly in the making. The Ifo index reading, however, does reflect the uncertainty that has hit the German economy again on the back of geopolitical tensions and tariff threats.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/germany-economic-outlook-remains-uncertain-ing-202601261459
