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The outlook for the German economy has improved significantly this month, according to a survey of badysts suggesting that the engine of Europe could gain momentum after the slowdown in recent months.
The economic climate indicator in the Zew survey rose by 3.1 points in April, extending the sixth month into positive territory for the first time since last March. A Reuters poll showed a consensus of 0.8 point. In March, the sentiment was minus 3.6 points.
The Mannheim-based research house said that the climate improvement was largely based on the hope that the global economic environment would develop less badly than previously supposed. .
The Zew index "adds to the tentative evidence that a gradual rebound in the German economy is occurring," said ING badysts.
Nevertheless, the Zew report noted that "the outlook for the German economy for the next six months. . . remains largely under control. "
The institute revealed that current conditions in April were 5.5 points, down from the 8.0 points forecast in a Reuters poll and its seventh consecutive decline. The month before the figure was at 11.1.
Geopolitical factors, such as the tensions between the United States and China on the UK's trade and exit process from the EU, have affected the Eurozone and its larger economy in recent months .
The Zew Institute has indicated in its monthly report that the postponement of the Brexit deadline could have contributed to improving the economic outlook. The UK was originally scheduled to leave the bloc on March 29, which was postponed until April 12. Since then, it has been postponed again.
The latest economic data, however, indicate "rather weak economic development," said Zew.
The survey, which began in 1991, calculates its index from the difference between the percentage of optimistic badysts with regard to the German economy over the next six months and those who are pessimistic.
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