The results of a study published by an Ifo Institute showed that sentiment among German exporters improved slightly in February, although only a few industries were optimistic about the coming months.
The export expectations indicator increased by 1.5 points compared to January, to -7 points.
“The German export economy is hardly benefiting at all from current global economic developments. There's still a lot of room for improvement," the Ifo Institute said.
The report showed that the glass, ceramics and food and beverage manufacturers, as well as the electrical and electronics industry expect export growth in the next months. On the other hand, manufacturers of machinery and equipment, automakers and the metal sector continue to observe weak export prospects.
According to the latest forecasts by the ifo Institute, German GDP will grow by only 0.9% this year. However, the institute stressed that "the course for recovery has essentially been set in the forecast period." Inflation has continued to decline, leading to a cut in European key interest rates in the summer, and an increase in purchasing power. The German Institute for Economic Research (DIW Berlin) and the RWI Leibniz Institute for Economic Research also expect the German economy to grow slightly, by 0.6% and 0.8% respectively, in 2024.