German business confidence increased slightly after falling in March as high energy prices and the Ukraine war hurt firms.
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The ifo Business Climate Index rose to 91.8 points in April, up from 90.8 points in March, attributable to less pessimism in companies’ expectations.
Even though current conditions were largely unchanged, firms were less pessimistic about their outlook, signaling the German economy is holding up in the face of economic uncertainty.
Clemens Fuest, ifo President, stated that after the initial shock of the Russian attack, the German economy had shown its resilience.
IFO stated that it does not see Germany plunging into recession in Q1 of 2022 but indicated that China’s lockdowns would affect the economy in the next months.