19 August 2009 / AP, FRANKFURT
Investor confidence in Germany, Europe's biggest economy, rose sharply in August as hopes grew that the economy will recover faster than previously expected, a closely-watched survey showed Tuesday.
The ZEW Center for Economic Research in Mannheim said its monthly index, which measures investors' outlook for the next six months, rose to 56.1 points in August from 39.5 points in July -- well above the indicator's historical average of 26.5 points. Germany's export-dependent economy sank into recession last year as the global downturn dried up demand for its manufactured goods. But last week, the country reported a 0.3 percent increase in growth in the second quarter compared with the previous quarter, technically lifting out of its worst recession in decades. The ZEW said the positive growth figures for gross domestic product have led to a better assessment of the current economic situation in Germany. The ZEW said all sectors for the German economy and particularly the export-oriented sectors have noticeably improved.
