The January IFO index points to ongoing uncertainty in the German economy, reflecting geopolitical tensions and tariff threats. Despite this, ING maintains its outlook for further improvement, supported by recent macro data showing rising industrial orders. However, significant structural issues remain, and the government must implement the necessary reforms for a sustainable recovery. Carsten Brzeski, global head of macro at ING notes.
IFO index shows mixed signals
“The unchanged IFO index in January reflects the uncertainty that has again hit the German economy due to geopolitical tensions and tariff threats. However, for now, we stick to 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 turn around in the industry at the end of last year.”
“Even if today’s IFO index weakens some of our optimism, an economic recovery is clearly underway. However, the IFO index readings reflect the uncertainty that has again plagued the German economy due to geopolitical tensions and tariff threats.”
(This article was created with the help of an artificial intelligence tool and reviewed by an editor.)
